Want To Start Paying Taxes In Taiwan - HOW?

[Klau]

Hello,

I have several questions. I hope I can find some help here.

Background information:
I’m self-employed, freelancer. I have been traveling around the world for several years now, currently residing in Taiwan. I will soon become a tax resident based on the 183 days rule. I don’t have contracts, pay-slips as I’ve been paid through PayPal/cash/cash transfer services.

My Questions:

1. I want to start paying taxes in Taiwan. I want to do this primarily because I want to justify that I’m paying taxes SOMEWHERE. How do I do this?
2. I don’t operate under a legal entity (a company) so how can I justify this income? Foreign sourced income?
3. When do I have to start paying taxes? For 2023, do I pay as soon as I hit the milestone of 183 days or next year, during the next filing period?
4. I plan on marrying a Taiwanese national. By marrying her, I’ll get an ARC with open work rights. Will it be very difficult getting a bank account as I’m not locally employed? Right now, the only bank account I have is at the post office.

Thank you in advance for taking the time to help me with this. I hope I don’t have to consult a tax lawyer.

[qwert_zuiop]

I see the following issue:

@Klau

By marrying her, I’ll get an ARC with open work rights.

You currently don’t seem to have an ARC with open work rights (yet), so you’re technically working in Taiwan illegally.

Asides from that, you can simply go to the tax office next year and declare your income for this year.

@Klau

Foreign sourced income?

Yes, although it will count as “Taiwan-sourced” because you earned it while physically working from Taiwan.

[Klau]

You make a very good point and I was just updating my post to reflect that.

So, in this case, the sensible thing to do would be laying low? I’m not asking how to commit tax evasion, I just want some opinions on the best course of action.

[Andrew]

@Klau

1. I want to start paying taxes in Taiwan. I want to do this primarily because I want to justify that I’m paying taxes SOMEWHERE. How do I do this?

Go to the tax office with your documents and say “I want to file my income tax for last year”, or just file online. I’d do the latter. If 2023 was the first year you became tax resident, you’d do that in May 2024. If you’ve previously stayed here more than 90 days in a year, they’ll likely ask you about those years too, so you’d want to be prepared for that.

@Klau

2. I don’t operate under a legal entity (a company) so how can I justify this income? Foreign sourced income?

If you did the work in Taiwan, Taiwan would consider it Taiwan-sourced income. Should be fine to file as an individual (I do).

@Klau

3. When do I have to start paying taxes? For 2023, do I pay as soon as I hit the milestone of 183 days or next year, during the next filing period?

Next year, if this is the first year you’ve stayed over 90 days. I’m not sure what the deal is legally if you’ve previously stayed less than 90 days and worked for an overseas employer while physically in Taiwan (but I think you could claim you were here as a tourist and they probably wouldn’t question it that much).

@Klau

4. I plan on marrying a Taiwanese national. By marrying her, I’ll get an ARC with open work rights. Will it be very difficult getting a bank account as I’m not locally employed? Right now, the only bank account I have is at the post office.

Nah, should be fine.

[qwert_zuiop]

@Klau

So, in this case, the sensible thing to do would be laying low?

You’ll probably find conflicting information about that one: Some will tell you that the tax agency won’t really share their data with the immigration agency - others will argue that the potential penalties for tax evasion are much less severe than those for work without a work permit. And others will say that Taiwan doesn’t really care about remote workers on tourist visas. YMMV.