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
That’s the whole point of filing taxes at the year end. The tax department or your employer don’t know your whole income as yet. This is a SOP the world over. It’s nothing special.
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).
That sounds about right, i have no dependants and i am unmarried. And all my income is just from my regular work. I am looking forward to my tax return next year
Tax residency is determined by the number of days in the calendar year that you spend in Taiwan, regardless of whether or not you have an ARC. I changed the thread title accordingly.
Yeahhh, I know…but I’ve been working for the last 14+ hours straight with another hour or two to go, and sleeping is a bit more attractive than saving the extra 1% at the moment.
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.
