I’ve been invited to join a photo agency that is based in New York. As part of the legal requirements, I’ll need to get an International Tax ID Number (ITIN) from the IRS as there’s a withholding tax of 30% on any payments to me.
For most countries, the tax treaty between the US and other country means this 30% is reduced to 5% or so (the range seems to be 0-10%). I’m not able to find any info though on whether Taiwan-US have something similar.
If they don’t, then it won’t be worth me joining this agency, as I’ll have to pay the full 30% to the IRS, plus whatever tax is required to the Taiwan govt.
I guess my other option is to do it all through Australia, but I’ve been declared non-resident for tax purposes in Aust since 2002, and I’m not sure if it’d be possible (or in the eyes of the IRS - legal) to have the tax calculated per the treaty with Aust as I don’t live there.
No tax treaty between Taiwan and U.S. If your new company is based in the U.S., you will no doubt be paid by a U.S. company which wil require withholding and a filing by yourself. I am not sure of the withholding rate but I don’t see a way around your eventual taxation in this scenario.
Give AIT a call and find out if there is any such reciprocal treaty between TW and US? I seem to recall someone else here saying that they can be helpful with info about US tax law for expats living in TW.
Yup; good idea. Call an American Institute and ask them how to avoid payng U.S. taxes.
They will first tell you that they don’t give tax advise. Next they will ask you why they need the information. (Excuse me, sir, let me put your name on my inquiry form)
If you call AIT (they are helpful but they (and by the way, this forum, is not designed to give illegal information)) just ask pointed questions. Trust this. U.S. and Taiwan have NOOOOOOOOOOO! tax treaty. Your S.O. can buy and sell stocks without capital gains and without “ordinary income”.
All that being said, it’s illegal. Not the capital gains part, but the "ordinary income part. Pay your Taiwan income tax and be glad it isn’t worse. For more info about tax free income, do a search.
EDIT: It looks from your post that you are an Aussie. Good on ya. I can’t help but wonder what country you calll home.Certainly Australia is not home for tax purposes (are you sure?) Is the U.S. home? doubtful, unless you are are paid from a U,S company, while you are anywhere in the world), Wait . . . . . That’s you. Pay the tax or get advise from a qualified expert. Sorry for me comrades around here but they hardly qualify.
I’m not looking to do anything illegal to avoid tax. All I wanted to know was whether there was a tax treaty or not. And, if so, what % of tax I’d have to pay. I don’t mind having to pay tax on sales through this agency, but if I need to pay 30% tax due to no treaty, plus 10% or so in Taiwan, as well as agency commissions, it’s not worth it in a time/money sense. If there were a tax treaty, it’d be worth it.
And yes, I’m definitely non-resident for tax purposes in Aust, because I remembering stating it on the last tax form I filed, back in 2002.
I just joined a US-based company and curious about the answer to this very topic. Just to confirm the discussion below, given the fact that there is no tax treaty between US and Taiwan, does that mean I have to pay 30% tax on US income to IRS? Is it still true even I have submitted W-8BEN form to claim foreign status?
Let’s also look at the other side. Regarding Enigma’s “pay your Taiwan income tax” comment, the important assumption is TNTA (Taiwan National Tax Administration) is able to track down the income source – the common tax paying practice nowadays is to get the confirmed list of tax items from TNTA and pay accordingly – otherwise even if one wants to do everything legal it would be an issue paying some items which is not showed in TNTA record. So the real question if if the assumption stands or not.
Anyone who can shed some light on this is very appreciated.
cfimages, is that agency based here? AFAIK Taiwan does not tax (personal) income that is not earned in Taiwan, so if your job is not in Taiwan there is no need to worry about taxes here.
