[VISA RUN & TAXES] Questions of a Greenhorn

Hello Ladies and Gentlemen,

I come from a Country that has a Double Tax Agreement with Taiwan and have a “Business” registered in my home country.

Its partially passive income, partially income which comes from not providing any services i know, this sounds dumb, but thats what it is. (like not selling things, not consulting, etc) I dont want to go too much into details tho.

-no bank account in taiwan
-no money transfers in taiwan
-money goes from my “business account” to my private account

  • i then withdraw cash from the atm
  • i dont participate in the local economy
  • i dont provide any consultation / programming / etc.pp
  • all money is received on the account by bank transfer or paypal

I have two Bank accounts , one for the “business” , the other one for private things (required in my homecountry by law if you earn income while self employed)

I Travelled here last year and meet a wonderful girl, this is why i ended up on Ihla Formosa.

Soon i will be here for 183+ Days (visa running to HK) but i feel the anxiety rising up since the People at the Aiport could ask questions. (after 183+ days i am considered a tax resident in taiwan)

I do not want to evade any taxes, and i am willing to pay them.
But i am worried that they may also ask me where the money comes from etc.

i know its risky, but i want to go legit one day and find a job here to eventually get an arc, thats why i want do to it right

*if theres people that have been doing visa runs, i would love to get in contact with you via PM

Sadly my search didnt result much except “dont overtsay your visa, which i will never do, i depart 5 days earlier atleast, to be sure”

My Questions

  1. Who of you had to pay taxes after staying 183 + days! (visa run ofc, i dont mean arc holders!)
    1.1 Did Immigtration ask questions? If so, which ones?
    1.2 How did you pay the taxes? what Documents where required?

  2. Since the double tax agreement also is made to prevent tax evasion, what can the taiwanese tax office see from me in my home country?

  3. where can i see what taxes i have to pay?
    3.1 how to prevent being taxed twice, since the double tax agreement is in place
    3.2 is only my INCOME (private account) taxed or ALL of it? (both accounts)

I asked three accountants in my country but they have no fucking clue… which is a shameful display to be honest.

I hope you guys can help me, i can really need all help you can offer since i am greenhorn.

:smiling_face_with_three_hearts:

If you stay for more than 183 days and your overseas income is more than NT$1,000,000, you should file it. Whether the overseas income is taxed depends on your other conditions.

AMT for overseas income is only effective you are a Taiwan tax resident and overseas income is over 6.7 million NT. … However overseas income over 1 million NT should still be filed. Pension payments are only taxed for the salary you earned while in Taiwan .

Income Basic Tax Act
https://law.moj.gov.tw/ENG/LawClass/LawAll.aspx?pcode=G0340115

Article 12
The amount of basic income of an individual shall be the sum of the net taxable income as calculated in accordance with the Income Tax Act and the amount which is under the provisions of the following subparagraphs:

  1. Income, which is derived from sources outside the Republic of China and is excluded from gross consolidated income, as well as income which is exempted in accordance with Paragraph 1, Article 28 of the Act Governing Relations with Hong Kong and Macau. However, if the aggregate of the two mentioned sources of income in a filing unit is less than NT$1,000,000, it may be excluded from the basic income.

個人海外所得應納入最低稅負申報
http://www1.jihsun.com.tw/Office/overseas.htm

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If you are in Taiwan for more than 90 days you must file. If you are here past 183 days you can file as a resident which carries some benefits. These are often confused.

When/ if you attempt to go legit, and are forced to file because they know you now, the tax office will see your past entry/exits and inquire why you didn’t file those for those years. If you happened to owe for that period they will assess whatever interest and fees they can for being late.