Who else thinks that the 183 day rule is pointless and unfair?

I don’t get it, either. I initially misunderstood the OP and assumed he was in his first year. I’ve not heard of anyone having to do this every year.

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I fail to see how a rule is randomly applied, legally. Surely it should be universal? @tando?
Laws, although often open to interpretation, are mostly applied with consistency.

The rule is, employers shall withhold taxes and if it is smaller than the finally determined amount, they shall make additional payment of the deficit to tax office, though they may claim it from the taxpayer.

The law doesn’t say which % they should withhold before each taxpayer clears the 183 days each year.

Articles 88~98 of Income Tax Act.

The Chinese article says when a foreign employee is expected to stay for more than 183 days, the employer can withhold by a resident rate from January.

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I have an APRC I have been exempt for as long as I can remember.

And you’re right!

It is not a rule, so you are not exempted.

I’m on an employment ARC, but my employer expect me stay for more than 183 days, so they don’t withhold 18%.


As a Taiwanese employer - can confirm it’s up to the employer. It’s just a box on a form to fill in and it is the same form for foreign nationals and Taiwanese nationals.

Edit - ProTip: in terms of talking with your employer about this, note that they may never see the form. It’s very likely that this is handled by an external accountant for small employers. In cases like these, the accountant will likely have made this choice on the employer’s behalf as a risk avoidance move. Be mindful of this dynamic as you make your request.


An employment ARC is for one year correct?

One to three years. Depends on your contract.

It doesn’t have to depend on your contract. The ARC can be upto 5 years for special professionals. You needn’t have a contract job here. For example I’m employed as a regular full timer. There’s no term limit.

My employer deducts only 5% after completion of 1 year for regular full time foreign employees.


There is no actual rule about this. The 183 day thing is something that only Tier 0 foreigners get trapped in.

So what’s the best way to go about asking an employer not to withhold the 18% since it’s not actually illegal for them to do so? My school (public school) wants to withhold 18% starting from this month even though my contract goes through 7/31.

It’s an internal policy. It’ll be upto the management to decide. You could write a letter detailing the law.

I’d politely ask them, stating financial difficulties as a reason. I don’t think you’ll get it, though, as the 18% protects them from foreigners who quit mid contract.

My contract with the school started in July 2020 and I was just told that my December salary will be with the deduction of 18% and yet again I have to go through the process of 183 days…this sucks…

I assume that’s your “December salary” paid in January. It’s when you receive the money that matters for tax purposes, not when you earned it.

Yes, it is my December’s salary but I was told that I will pay again 5% tax with my June’s salary. This is pretty confusing.