The food allowance is like a standard tax deduction. For example if your salary is 40k, then after all deductions like NHI, food, labor, you might receive 36k and your taxable salary after deductions is 34k. Just rough numbers. You don’t have to show any food receipts.
The tax filing software now shows the following prompt when filing taxes for 2023:
Individual Controlled Foreign Company (CFC) Rules are enforced from January 1, 2023. If any member of the reporting household directly or indirectly holds the shares or capital of a foreign affiliated enterprise in a low-tax country or jurisdiction, please refer to “Statement of The Shareholding of An Individual and of His/her Related Parties” to determine the applicability of Individual CFC Rules.
The list of countries or regions with low tax burden under controlled foreign enterprise system can be found here (scroll down for the PDF):
https://www.dot.gov.tw/singlehtml/ch26?cntId=1be172f9baa344489d8717eb57ce4476
The most notable entry on the list is probably Hong Kong. So it doesn’t seem to be legal anymore to have an offshore business in Hong Kong to avoid paying taxes in Taiwan completely.
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Why not? My EU clients are fine with this. There is not EU VAT to pay for an invoice from my Taiwan company. I ran an “enterprise” not a company.
So this is also a single person company with small paid in capitol.
I came across this page (published in May 2024) regarding CFC rules : Ｍay 2024 CFC Declaration-National Taxation Bureau of Taipei
What isn’t clear is, if we are under $7M retained earning, do we still need to report the company documents? Or are we exempt on reporting it?
Probably best to check with the tax authorities directly. You’re also less likely to get in trouble for reporting something you don’t need to report rather than failing to report something you need to report.