So do you know what this person was talking about:
I have no idea and unless you are working for a boss who is already withholding and reporting it, seems tax evasion is a national past time and the tax authorities seems very slow at auditing. So lots of “poor” guys making a ton of money that the government don’t care about.
But in other posts I thought a tax resident is staying in Taiwan over a certain number of days per half year period or something.
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.
Income Tax Act says
For any individual having income from sources in the Republic of China, consolidated income tax shall be levied in accordance with this Act on his income derived from sources in the Republic of China.
No, I was talking about overseas income, i.e. income not paid by Taiwanese employers and not paid for services rendered while physically in Taiwan. If one has a job in the US for example and lives there, they do not need to pay taxes on that income in Taiwan (unless they’re a tax resident in Taiwan and said income exceeds 6.7 million).
For foreigners, that is the case (183+ days a year). For Taiwanese, other rules apply (and I think those also include the fact whether one has a an active household registration or not). (There is also a thread about the fact that foreigners are being discriminated against in that regard as being a tax resident might be beneficial in some situations and for foreigners it’s only attainable by staying 183+ days).
How can one be living and working in the US and be a tax resident of Taiwan at the same time? That’s what’s confusing me.
There are some criteria which one has to fulfill to become a tax resident in Taiwan. Once those are fulfilled, it doesn’t matter if one is also a (tax) resident of another country or not.
If one has an active household registration, I think there are ways to become a tax resident even when staying less than 183 days (I think 90 days or even less are enough in that case - but not sure about this). For example, by flying to Taiwan on extended vacation, remote work, … „Living in country A“ does not always mean „Not being a tax resident of country B“.
I’m still struggling to see the benefits of intentionally remaining a tax resident of Taiwan but living and working in the US.
So let’s say I’m a US and Taiwan citizen, and I remain a tax resident in Taiwan while working and living in the US. How does that benefit me in terms of taxes?
It’s not always a benefit being a tax-resident. Ones you are one, you are. That’s usually not a choice one can freely make or not. Ask any US citizen what’s the benefit of still staying a US person in terms of taxation even when they live in another country (hint: there isn’t any benefit - the US just wants more tax revenue )
Although there be benefit such as higher allowances / standard deduction (if one also has income from Taiwan such as rental income, dividends, …)
it could be a day.
or
See Taiwan - Individual - Residence
An individual with a domicile in Taiwan and habitually residing in Taiwan is considered a resident unless one meets the 31-days rule mentioned below. A foreign individual who stays in Taiwan for 183 days or more in a calendar year is considered a resident. A foreign individual who resides in Taiwan for less than 183 days in a calendar year is considered a non-resident.
A Taiwan national with household registration in Taiwan may be deemed as a non-resident if one has resided in Taiwan for less than 31 days and more than one day within a calendar year and one’s centre of vital interest (i.e. entitlement to Taiwan social security benefits, individual’s spouse or dependent child resides in Taiwan, or performs other economic/financial activities in Taiwan) is not in Taiwan
If you want to avoid tax residency in Taiwan as a Taiwanese you either a) give up your household registration or b) stay less than 31 days and c) make sure you don’t have a „centre of vital interest“ in Taiwan.
It’s not like you can say „Well, I live in the US and just come to Taiwan to vacation for 40 days per year, but I don’t want to become a tax resident!“ - not your choice to make at that point as 40 in this example is already more than 31. of course, you can start planning to avoid getting the tax residency - but that involves more than just working and living in another country.
Yeah you have no idea
Then you go on about tax evasion instead of saying the Taiwan government allows tax minimization like other countries.
I always think Taiwanese are mostly kind and very nice, easy to talk and make new friends.
You don’t need to worry about tax if you don’t have any documented income.
Lots of established wealth that stays within families.
Wow, quite a lot.
1 million nt is about 30,000. Not hard to make this in the us if you’re working full time at 15 dollars an hour. I made about 18,000, and I was getting about 11 an hour working part time.
And you’re not living well at this income in the us.