I’ve been looking over my tax documents and pay slips and I’m confused. Something fishy is going on and I can’t quite put my finger on it. I’m hoping you can help.

I arrived in August of 2014 for my 1 year contract. I was not in Taiwan for 183 day last year so I know I’m subject to the 18% tax rate for 2014. I was paid cash for the month of September because I’ didn’t have a bank account set up/maybe wasn’t legal to work yet? October and November I was given a pay slip and my school took 18% out…no problems there. However, I’m pretty sure my school is not telling the authorities how many hours I am actually working. I am told not to show anyone my pay slips, and I MUST stay for 183 days in 2015. Fast forward to now, I will not be able to stay 183 days. That means I will be taxed 18%. I knew I wouldn’t be able to stay 183 days from the beginning and told my school to take out 18%, so I didn’t have to worry about saving money to pay it back later…they refused to do this. They only took out 5% each month claiming it was helpful to me. The thing is, they are taking 5% out of the pay I am actually getting paid but reporting about half the hours I work. So are they pocketing the difference between the 5% of my actual vs the pay they are telling the authorities?

I was just given my documents to take to the tax bureau and it says I owe a boatload of money for 2014. How is this possible if I was taxed 18% all of 2014? I don’t think I should owe anything, correct? Also, why would my school “be nice” and only take out 5% in 2015…wouldn’t they want to cover their risk and just take out the full 18%? Seems strange.

Any idea what’s going on here? What should I do?


Did they take out 18% of your entire paycheck last year or did they take out 18% of the amount that they reported to the tax office?

An easy way to figure out if your school is screwing you is to add up all of your monthly salaries and see if they match the reported amount. Then add up all of your deducted taxes and see if they match the amount that the school was paid to the gov’t.