Why am I taxed for just keeping money in the bank?

I have some money in Chinatrust bank and I taxed(paying fee) around 23% just for keeping money in the bank as a foreigner. Its not a direct deposit from my employer, but just regular checking account.
Is there are any bank in Taiwan that is not charging fee just for keeping money in the bank?
I understand the Minimum Balance concept of course.

Do you mean they charged you 23% of what you had in the bank?! I sure hope not - that’s insane.

Or do you mean they paid you some interest, and then took 23% of that back as tax? That’s what happens to me: I might get a couple of hundred NT in interest, and the same day about 50NT goes back in tax. This happens to me across several bank accounts, so I assume it’s normal - interest rates are so low these days that I’ve never bothered figuring out how to save money on it.

Gosh Citibank charges you 48pct per annum for money you owe them, in Indonesia and about half that in the USA (credit card), but it would be incredible if they charged you 23pct of what you had in the bank. NObody would keep any money in the bank if that happens. I am even surprised that they tax your interest, unless your interest was HUGE.

In the USA , at least the bank reports your interest income to the IRS and you file that with your taxes as your taxable income. One has to report all interest earned to the dollar.

But the bank does not directly charge you interest. That was what Taiwan was before, i guess things have changed.

Even in Taiwan isnt there a minimum (for residents) you have to go over on interest income to be charged any tax? So therefore, it stands to reason that when you do your tax return as a resident you can get back a lot of that interest tax paid?

All is not lost. If you are liable for less than 23% income tax , you can take the receipt from your bank and file it with your other income tax documents and get the difference back.

this 23% not a government tax but bank fee. Does it matter if I keep it in USD or TND?
Reading your replies I feel I got been feed wrong info. :frowning:
So no bank in Taiwan does this?

To clarify: you mean they charge you 23% of your bank balance? So if you have 100,000NTD in the bank, the bank charges you 23,000NTD as a fee? If that’s true, then you’re definitely with the wrong bank, and perhaps even have a legal issue. I’ve never heard of anything like this.

That makes no sense whatsoever.

BTW, few people have a “regular checking account” here. Your use of that phrase makes me wonder if you perhaps signed up for some highly atypical account. (Do you really have personal checks?) But, even so, it’s hard to imagine something in which a bank would charge you 23 percent of your deposit. You should talk with someone at your bank soon. And if they say they can’t do anything to fix that, take your money someplace, anyplace else and put it in a regular savings account.

Never heard anything of that sort before, not even as service fee does it make sense. Yes, even for foreigners. Even for Chinatrust, that is a new low.

Take your money to the Post Office pronto.

He must be talking about deposit interest tax. Common enough around the world.

Ok, but they only give back what, 1.2 per cent in interest? On bonds? One year bonds? So 23% has me scratching my head. And I don’t trust Chinatrust.

I’ve never heard of a tax on a bank balance, in Taiwan or in my home country (US).

If 23% of my bank balance were being taken from me, I’d buy a safe and keep it in cash at home.

That’s what I thought, but unless he’s got $$$ in there, it wouldn’t be a lot (in absolute terms) considering interest on deposits is <1% anyway. I’ve not noticed any interest taxation on my current account (Cathay). Although come to think of it, I’ve not noticed any interest either.

My advice would be to simply change banks.

swissland has a wealth tax, that is the government will at year-end tax you on the balance you hold in the bank, but this a insignificant p.a.

the OP must be wrong, describing his situation wrong or it’s a case of “This word. I do not think it means what you think it means.”