| View previous topic :: View next topic |
| Author |
Message |
karenannehope
Joined: 17 Aug 2004
Posts: 25
Location: Dublin, Ireland
|
 Posted: Sun Oct 03, 2004 3:51 pm Post subject: How does the whole tax thing work?? |
 |
|
Hi all
My husband and I are arriving in Taiwan mid/end November 2004. I am eligible for an ARC so we intend to pitch up on a 60-day tourist visa and look for jobs (one of us legally and one of us via the study visa route). However, I have been told that if I arrive in November I will lose a lot of money as I will not get any tax back??
However, apparently my husband won't even have to pay tax as he will be working on the qt!
PLEASE could someone explain how the whole tax thing works in Taiwan.
Thanks!
Karen |
|
| Back to top |
|
 |
markholmes
Joined: 21 Jun 2004
Posts: 661
Location: Wengehua
|
| Posted: Mon Oct 04, 2004 3:00 am Post subject: |
|
|
You will pay tax at 20% for the rest of the year instead of 6% (or maybe 10% I forget which) . You will not be able to claim this back for this year.
Next year you will continue to pay tax at 20% for the first 183 days you spend in the country in 2005, however after 183 days in the country your tax will drop to the lower rate and you will be able to claim the difference back for the first half of the year.
If you get here at the end of November you'll only be able to work a max of a month this year so the extra lost to tax will be negligible. |
|
| Back to top |
|
|
wombat
Joined: 18 Jun 2004
Posts: 134
|
| Posted: Mon Oct 04, 2004 1:57 pm Post subject: Re: How does the whole tax thing work?? |
|
|
| karenannehope wrote: |
| My husband and I are arriving in Taiwan mid/end November 2004. I am eligible for an ARC so we intend to pitch up on a 60-day tourist visa and look for jobs (one of us legally and one of us via the study visa route). However, I have been told that if I arrive in November I will lose a lot of money as I will not get any tax back?? |
I realize that this question has already been answered, but I am not sure how clear it all is.
The tax year here in Taiwan runs from January through December. All foreign residents working in Taiwan legally must pay 20% tax for the first 183 days (six months) of their stay here. After this, the tax rate drops down to 6 or 13% depending upon your income level.
If you arrive before the end of July then you are here for more than 183 days in that first tax year, and therefore your tax will be calculated at either 6 or 13%. As you were paying 20% for the first 183 days, you would then be entitled to a partial refund, being the difference between the 20% that you paid - the 6 or 13% that you should have paid.
If you arrive after the end of July then it is impossible to be here for longer than 183 days in that tax year. As a result, you automatically forfeit the full 20% tax that you pay until the end of the year.
As you will be arriving in November you will only forfeit about one and a half months. Starting from January the next year you may find that your employer still deducts 20% until you get up to the 183 day mark. Don't worry about this as you will be entitled to a partial refund of this when you do your taxes.
| karenannehope wrote: |
| However, apparently my husband won't even have to pay tax as he will be working on the qt! |
This is true, but he is at a disadvantage in many other ways, so it will no doubt even out in the end. |
|
| Back to top |
|
|
karenannehope
Joined: 17 Aug 2004
Posts: 25
Location: Dublin, Ireland
|
| Posted: Mon Oct 04, 2004 5:25 pm Post subject: |
|
|
Dear Mark and Wombat
You guys rock - when reading other threads I have noticed that you always give excellent info! Thanks so much  |
|
| Back to top |
|
|
markholmes
Joined: 21 Jun 2004
Posts: 661
Location: Wengehua
|
| Posted: Mon Oct 04, 2004 6:35 pm Post subject: |
|
|
| Quote: |
| you would then be entitled to a partial refund |
Partial it maybe, but it can be a huge pile of cash, and yes they give it to you in cash  (well, one counter gives you a cheque, then you go to the next counter to swap it for cash). My wife and I got much more than we had expected.  |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
