What form for US taxes if own business in Taiwan?

I little bit confuse what tax form I need to fill up if I self-employed here in Taiwan?
Can anyone shine the light?


For US taxes it is Schedule SE Self-Employment Tax. I do not know what sort of business you have, but any income that is considered self-employment income you need to use this form as far as I know. You probably will also need Schedule C Profit or Loss From Business among others.

Even if my business located and registered in Taiwan?

Hmmmm, that’s an interesting question… Do you give yourself one of those white tax papers that shows your income? If so, you would probably just claim it as foreign earned income tax credit on your US income tax. But if you are not taxed on that income in Taiwan it becomes self-employment income and you have to pay US taxes on it. At least this is my understanding.

“The self-employment tax is a social security and Medicare tax on net earnings from self-
employment. You must pay self-employment tax if your net earnings from self-employment are at least $400.”

I’m aware of that rule. But if your business is paying you in Taiwan and you are getting an income tax statement to file your Taiwan taxes then the income falls under the foreign earned credit, if you are not getting that white paper than you need to file that under self-employment. At least this is how I believe it works. If in doubt give the IRS a call, you don’t have to give them your name. Actually I don’t think you even have to tell them where you are calling, just that you owe a business outside the US and here is the situation, and they will run you through the rules.

I just realized something… if the business is in your name it could still be considered that you are self-employed, thus you might still need to file that Schedule SE and pay the 15+% in US taxes even if you are filing in Taiwan. Thus you may be double taxed. Again, contact the IRS anonymously.

I called IRS in the (EST time) morning and was told by operator that no one is available, I called in the early evening and estimated wait time for agent is aprox. 60 min
I tried to send email form from IRS site with question and low and behold SUBMIT button magically does’t work :slight_smile:
So after calling to Beijing IRS office and been advised to send them e-mail with inquiry I just got reply:
“Based on the information you provided, if your total household income was $400 USD in 2013, then you are not required to file. However, please keep record on your income and expenses for any future needs”

Well apparently they don’t want you to be compliant then, surely you can use that as an excuse not to pay taxes! :smiley: :laughing: :laughing: :laughing: :roflmao: :discodance:

But I am a little surprised with what they said, I would get another op on the line if you can. Wait until after April 15. You have until October to file anyway I think and if you have an accountant they can file the extension for you.

I can’t find a cheap accountant, asking 400usd in average for help with tax preparation per year. I find it too much

Indeed it is. But that’s cheap compared to what some are charging. Can you use your parent’s account? Or find one locally where you used to live in the US? Of course, they have to spend time to figure out expat taxes which sometimes they end up screwing up…

ACA is working on a list of accountants that can prepare our taxes for us, but the list is not ready yet. If you are not already member, I would recommend you become a member. Many things they do are quite helpful.

Has anyone resolved this issue. Yet. Does anyone know a good tax preparer.

In Taiwan, I believe you will pay at least that. My suggestion is to find an accountant back home in your city that you either used BEFORE you came to Taiwan or call around, but you should make sure they know how to do expat tax returns. But generally you are still going to pay anywhere from $150-$300 depending on how complicated your tax return is.

In addition check the ACA website for a list as I had posted before, see above.