After my first 183 days i have spent here, i am now being taxed less by my employer. Currently the new tax rate i am working with is 6%. But every government website/doccument i have read says that once the 183 days is over, the foreign resident goes to the same tax rates as listed in the website.
The 0-540000 NTD tax bracket is 5%
yet my boss told me that their accountant said that foreigners pay 6% while locals pay 5%.
Could i please get clarification for this? Apart from one blog website that says you get paid from 6% - 18% tax after your 183 day period, i cannot seem to find anywhere else explicitly stating that i pay 6% tax
If they withhold too much (this may happen sometimes), you would be in line for a refund after you file your tax return for the 2021 taxation year (i.e. file in May 2022; in my experience, refund usually delivered promptly on August 1).
Thanks guys i think i am starting to understand. Still its a bit weird as my total income i am making is just from this teaching job. And i know i wont make more than 540,000 NTD in the financial year. I guess this is a Taiwanese way of doing taxes haha… still a bit of a culture shock for me XD
It’s also worth noting that the NT$0‒540,000 range here refers to your taxable income rather than your total income. You’d have to look up the exemptions and deductions for your specific situation, but as a minimum for an unmarried, childless, regularly employed person the exemption/deductions would be NT$88k (standard exemption) + NT$120k (standard deduction for a single person) + NT$200k (special deduction for salary and wages), meaning that you don’t pay any tax at all on the first NT$408k (so any tax withheld should be returned to you when filing your tax return in 2022).
I dragged myself to the tax office late yesterday afternoon to discover that payment there is only available until 3:30 p.m. when the attached bank closes (despite the office, whose sole function is to extract money from people, staying open until 5:30 p.m. — odd).
In any case, the nice lady issued me a new payment form so I could pay in a bank today with only the interest but no penalty, which I just did, and got charged exactly NT$1 interest for being 7 days late.