Take what I say with a grain of salt, it’s all based on what I’ve figured out as I’ve been preparing for the move. I’m not there yet and don’t have firsthand experience, though I am in the home stretch since I only have 6.5 months left on my current contract and expect to be in Taiwan (or somewhere other than the US) next summer. :discodance:
I’m a USA citizen and I’ll be working as an independent contractor for a Canadian company while living in Taiwan.
Canadian tax implications: This I’m the least sure on, but as far as I can figure I’ll owe them nothing since I am neither physically in the country or technically working for a Canadian company (as an independent contractor I work based on a legal entity I create, whether that be simply my SS number from my home country, a DBA, or some more complicated business structure such as an LLC, corp or s-corp).
US tax implications: Based on satisfying foreign residency requirements to qualify for the FEIE, I’ll be liable for the 15% federal rate for Medicaid and Social Security, but no other taxes federally. For state taxes it depends on which state I last had legal residence in, but based on being proactive I should have no state tax liability.
Taiwan tax implications: If I plan on getting an ARC based on this income/employment, I will need to either register a business or register a representative office based on representing the legal entity I created in my home country. There are good posts on this forum about how that’s done and the tax implications. Otherwise, I pretty much am with TL. As far as I can tell if there is a system of reporting the money it’s either so obscure or so convoluted as to be virtually impossible to comply with in practical application.