Taxed at 13%?

I went to file my tax today and noticed that my tax rate had been raised to 13%. This I found very strange as from all the information I’ve found, foreigners are taxed at 6% after 183 days. This is my 3rd year filing taxes here in Taiwan so I fit into this clause. I asked the person at the tax office if it was because of a new law that I have been hearing so much about, and she said that it had nothing to do with a new law, and it was that I have been put into a higher tax bracket. However, the money I’ve made this year is not more than what I made last year. Has anyone else experienced this? Is this something my company is doing? I see them take 6% out of my salary every month so how can it be that I am taxed %13??

If you earn more than about a million, it’s 13% on the stuff above a million, I think.

iff.immigration.gov.tw/enfront/f … d=7&id=700

13% bracket is NT$410,001 to NT$1090,000

Well that makes sense. I’m guessing my previous school understated my income a bit. I’m just bummed at the size of my refund this year. :frowning:

I always used to have to pay about 15 000NT because my school never witheld the right amount. That was a pain.

The progressive difference goes up too, so 13pct bracket doesnt mean 13pct actual taxes right?

And I believe your entire income goes to that top bracket, not that parts of it are split up into different brackets far as i know.

You pay 6% up to 410 000, 13 % from 410 000 - 1, 090 000, 21% from 1,090 001 to 2,180 000, etc.

Progressive difference - 6% NT0, 13% NT28 700, 21% NT115 900,etc.

So you do pay in different brackets.

I was surprized today when I filed my taxed, and I had to explain why my income for 2008 is lower than 2007, I had
to put it in writing on my tax form. ???

[quote=“oldie”]I was surprized today when I filed my taxed, and I had to explain why my income for 2008 is lower than 2007, I had
to put it in writing on my tax form. ???[/quote]

Yeah, that happened to me, years ago. Nothing ever came of it.

jobmonkey.com/teaching/asia/ … aiwan.html

If I recall correctly, in the USA, you are taxed on your total income at the tax rate for your entire income minus exemptions, etc. I am surprised that Taiwan allows you to break it up into different parts?

That is to say the first portion taxed at six pct, the next portion up to the stated amount taxed at 13pct, etc?

Are you sure thats how it works over there?

I gather from what this guy says that you take your total income for the year minus all exemptions and deductions and then figure out where that falls in the tax table (for the total income) and then take the progressive difference and thats your tax liability. I dont see it being further split up by sections. Parts of it at six pct, others at 13pct, etc

taiwanease.com/columns/making-ta … me-tax.php

Personal income tax to drop one pct from six to five pct , 13pct to 12pct and 21pct to 20pct. Starting with your 2010 income.

daily.taiwannews.com.tw/etn/news … ety_TAIWAN

[quote=“tommy525”]http://www.jobmonkey.com/teaching/asia/html/taxes_in_taiwan.html

If I recall correctly, in the USA, you are taxed on your total income at the tax rate for your entire income minus exemptions, etc. I am surprised that Taiwan allows you to break it up into different parts?

That is to say the first portion taxed at six pct, the next portion up to the stated amount taxed at 13pct, etc?

Are you sure thats how it works over there?

I gather from what this guy says that you take your total income for the year minus all exemptions and deductions and then figure out where that falls in the tax table (for the total income) and then take the progressive difference and thats your tax liability. I don’t see it being further split up by sections. Parts of it at six pct, others at 13pct, etc
[/quote]

I’m not quite sure what you’re confused about. The general tax process is the same in the US & Taiwan:
[ul][li]Begin with your gross income[/li]
[li]take out any exemptions and deductions[/li]
[li]Calculate the tax rate on what’s left ()[/li]
[li]take any tax credits (I think that might only be in the US)[/li][/ul]
(
) The tax rates are progressive both in the US and Taiwan. However the US makes you look up the value in a table (if your taxable income is under $100k) rather than doing the calculation yourself.