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Is your SALARY TAXED at 18, 6 or 5%?
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2m01z



Joined: 18 May 2011
Posts: 23

PostPosted: Mon May 30, 2011 7:56 pm    Post subject: Is your SALARY TAXED at 18, 6 or 5%? Reply with quote

I am intending on teaching in Taiwan and need to submit my arrival date. Is the information below correct? Is there some of you who are taxed at a different rate than others? For those presently earning in Taiwan, i would highly appreciate your comments.

If you cannot come before July 2nd, please be aware of the tax laws of the ROC. A.R.C holders who are not in Taiwan for more than 183 days of a calendar year who earn a monthly salary equal to or more than NT$26,820 will be taxed at 18%. These teachers will not be eligible for a refund.


A.R.C holders who are not in Taiwan for more than 183 days of a calendar year who earn a monthly salary equal to or less than NT$26,820 will be taxed at 6%. These teachers will not be eligible for a refund.


A.R.C. holders who are in Taiwan for at least 183 days of a calendar year will be taxed at 5%, regardless of their income.
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dangerousapple



Joined: 18 Apr 2006
Posts: 292

PostPosted: Tue May 31, 2011 1:14 am    Post subject: Reply with quote

Nope, your last sentence isn't correct, but I don't have time to go pull up the actual details. Does anyone else have time to do that?

Off the top of my head, it's 18% withholding rate for the first 183 calendar days, of which you get some back if you are here for longer than 183 days.

The regular witholding rate for a teacher's salary is 13%...if employers declare your tax legally...if they declare you as getting paid the same as a Taiwanese office worker then your witholding rate is 6%.
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yamahuh



Joined: 23 Apr 2004
Posts: 1026
Location: Karaoke Hell

PostPosted: Wed Jun 01, 2011 1:10 am    Post subject: Reply with quote

OP should take a look through the first couple of pages here. There are about 4 tax related threads in the first 2 pages alone.

For the record; I am taxed at approximately 9% for the first 6 months and then nothing - so over the course of a whole year I am paying approximately 4.5% tax - most of which I will get back next year when I file my tax return.
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Pretentious Parrot



Joined: 04 Oct 2010
Posts: 17

PostPosted: Sat Jun 04, 2011 3:39 pm    Post subject: Reply with quote

The standard rate for English teachers is 18% for the first six months (Jan - June) and 6% for the last six months (July - December). If you are present in Taiwan for 183+ days, then you can get 12% of that tax that you paid for the first six months back from the government when you file your taxes the next year.

This is the standard rate: Some people may get taxed at different rates depending on your school, but above are the standard tax rates that are based on government regulations.
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yamahuh



Joined: 23 Apr 2004
Posts: 1026
Location: Karaoke Hell

PostPosted: Sat Jun 04, 2011 4:53 pm    Post subject: Reply with quote

They may be Govt regulations but after almost 5 years in Taiwan I've yet to meet anyone who pays the full 18% + 6% - I certainly haven't paid it.
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Pretentious Parrot



Joined: 04 Oct 2010
Posts: 17

PostPosted: Sun Jun 05, 2011 2:38 am    Post subject: Reply with quote

yamahuh wrote:
They may be Govt regulations but after almost 5 years in Taiwan I've yet to meet anyone who pays the full 18% + 6% - I certainly haven't paid it.


My name is Pretentious Parrot, I've been in Taiwan for 3 years and I've yet to meet anyone who does not pay the full 18% + 6%.

Nice to meet you. (Now you have met someone who has.)
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yamahuh



Joined: 23 Apr 2004
Posts: 1026
Location: Karaoke Hell

PostPosted: Sun Jun 05, 2011 2:39 am    Post subject: Reply with quote

Nice to meet you.
Sorry about your luck... Confused
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Pretentious Parrot



Joined: 04 Oct 2010
Posts: 17

PostPosted: Sun Jun 05, 2011 2:43 am    Post subject: Reply with quote

yamahuh wrote:
Nice to meet you.
Sorry about your luck... Confused


It is not luck. Simple percentages are what we are talking about. Taiwan is slow to enforce change, but for the newbies coming to Taiwan, my information is more accurate and useful.

I imagine you haven't changed jobs recently.
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yamahuh



Joined: 23 Apr 2004
Posts: 1026
Location: Karaoke Hell

PostPosted: Sun Jun 05, 2011 4:09 am    Post subject: Reply with quote

You imagine incorrectly.

I've been in Taiwan since 2007 (4 years not 5 - my mistake) and this is my 4th school. My choice not theirs. I'm not working here because I particularly love teaching kids, have debts to pay back home or am in a relationship with a Taiwanese girl. I'm here because it allows me the chance to save a substantial portion of what I make for travel. By the end of a one year contract I'm usually ready for an extended vacation and Taiwan is a great place to be based if you want to visit other Asian destinations.

Whenever I am ready to return to teaching I negotiate a contract with a new school and simply mention the fact that I would prefer not to pay the full 18% tax. I ask if 'anything can be done about it?'. Usually - surprise, surprise - there can...

My attitude is; if you don't ask you don't get and if a simple question makes my paycheque fatter then I'm definitely not averse to asking.

Speaking of newbies coming to Taiwan, I knew a guy last year who paid no tax whatsoever on his income of $60K a month. Taiwan was his first ever teaching gig and it was part of his employment 'deal'. The two newbies who replaced my wife and I at our last school paid approximately $1600 tax on incomes of $68K a month. But if you want to believe that your information is 'more accurate and useful' - knock yourself out... I'm simply stating the realities of my experiences here, I'm not going to argue with you about whose info is more 'accurate'.
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Pretentious Parrot



Joined: 04 Oct 2010
Posts: 17

PostPosted: Sun Jun 05, 2011 4:16 am    Post subject: Reply with quote

yamahuh wrote:
Whenever I am ready to return to teaching I negotiate a contract with a new school and simply mention the fact that I would prefer not to pay the full 18% tax.


>>I would preferer not to pay the full 18% tax
>>full 18% tax
>>18 % tax
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yamahuh



Joined: 23 Apr 2004
Posts: 1026
Location: Karaoke Hell

PostPosted: Mon Jun 06, 2011 1:58 pm    Post subject: Reply with quote

Errrm - OK - Good point.
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aslans_captain



Joined: 06 Jan 2012
Posts: 6

PostPosted: Sat Jan 14, 2012 2:22 am    Post subject: Reply with quote

yamahuh wrote:

Whenever I am ready to return to teaching I negotiate a contract with a new school and simply mention the fact that I would prefer not to pay the full 18% tax. I ask if 'anything can be done about it?'. Usually - surprise, surprise - there can...

My attitude is; if you don't ask you don't get and if a simple question makes my paycheque fatter then I'm definitely not averse to asking.


Forgive me for resurrecting old thread, but how do you get away with that?

Taiwan gov must be a lot looser than U.S. gov.
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Dr_Zoidberg



Joined: 29 Sep 2004
Posts: 406
Location: Not posting on Forumosa.

PostPosted: Sat Jan 14, 2012 3:07 am    Post subject: Reply with quote

Laws in Taiwan are more like suggestions than hard and fast rules. The fact that corruption is rampant also helps.
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yamahuh



Joined: 23 Apr 2004
Posts: 1026
Location: Karaoke Hell

PostPosted: Sat Jan 14, 2012 4:49 am    Post subject: Reply with quote

aslans_captain wrote:


yamahuh wrote:

Whenever I am ready to return to teaching I negotiate a contract with a new school and simply mention the fact that I would prefer not to pay the full 18% tax. I ask if 'anything can be done about it?'. Usually - surprise, surprise - there can...

My attitude is; if you don't ask you don't get and if a simple question makes my paycheque fatter then I'm definitely not averse to asking.


Forgive me for resurrecting old thread, but how do you get away with that?

Taiwan gov must be a lot looser than U.S. gov.


I don't get away with anything - the school accountant does the books and makes the tax declaration to the Govt. All I do is ask a simple question and they they write out a statement of income that declares I am working less hours than I am actually working for less money than I am actually making...My tax rate is based on that #
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aslans_captain



Joined: 06 Jan 2012
Posts: 6

PostPosted: Sun Jan 15, 2012 3:39 am    Post subject: Reply with quote

Dr_Zoidberg wrote:
Laws in Taiwan are more like suggestions than hard and fast rules. The fact that corruption is rampant also helps.


I heard Taiwan used to be very corrupt, but corruption has decreased over the years.

What is the situation like now? You have been in Taiwan for a relatively long time and must have some good insights.
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