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kait
Joined: 17 Jun 2004
Posts: 93
Location: Lungtan, Taiwan
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 Posted: Wed Dec 29, 2004 12:33 am Post subject: taxes |
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This is a very broad question; in fact, perhaps several questions all packaged together. I have been working here since September of this year, so I have been giving my generous 20% to the Taiwanese government. How do I file? I'm actually concerned about my employers doing much of this for me. I have received 3 paychecks from them, and none of them have been correct.
I have heard second hand that some people get their taxes refunded each year. Is this true, and if so, how?
I also need to know if there is anything unique I have to do with my US taxes. Do I claim my Taiwanese income in some way? |
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TaoyuanSteve
Joined: 05 Feb 2003
Posts: 1028
Location: Taoyuan
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| Posted: Wed Dec 29, 2004 7:01 am Post subject: |
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As I recall, you work for Hess. They should probably take care of most of your tax concerns for you. You will get your excess tax back, assuming you qualify (180 days in the country during the tax year). That's a nice infusion of cash when you get it.
As for US taxes, perhaps a US citizen can comment. I, myself, don't pay taxes in my home country. Call me a bugger, but I'm not going to pay taxes in two jurisdictions. |
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DirtGuy
Joined: 28 Dec 2004
Posts: 529
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| Posted: Wed Dec 29, 2004 8:02 am Post subject: |
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Don't worry about US taxes. Have checked into this with my accountant. You do not have to pay taxes on the first $75K ( I cannot remember the exact number but I think this is correct.) of income earned overseas. That's US dollars and not the local currency. You may still be required to pay taxes on money you earned in this country for things like interest, dividends, etc.
Hope this helps. |
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clark.w.griswald
Joined: 06 Dec 2004
Posts: 2056
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| Posted: Wed Dec 29, 2004 8:49 am Post subject: Re: taxes |
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| kait wrote: |
| I have been working here since September of this year, so I have been giving my generous 20% to the Taiwanese government. How do I file? I'm actually concerned about my employers doing much of this for me. I have received 3 paychecks from them, and none of them have been correct. |
The tax year in Taiwan runs from January to December. During your first 183 days of the first tax year that you are here you should be taxed at the rate of 20%. If you are here for longer than this 183 day period then you tax rate should drop to 6-10% depending upon your employer. Provided that you are here for more than 183 days in that first tax year then you are entitled to a partial refund of the taxes that you have paid.
You mention that you have been working here since September so you will not qualify for a refund on the 20% that you paid between your arrival and December 31st. You will forfeit this money to the government. The days are counted according to the number of days in the country as determined by your passport, so if you arrived before July 1st then you might be okay. If you arrived after about July 1st then it would be impossible to have been here for more than 183 days and therefore you lose all tax paid.
Taxes need to be filed between February and May, regardless of whether you are entitled to a refund or not. I encourage you to comply with this if you are planning on staying in Taiwan for a second year, as any failure here will be questioned when you do your taxes in subsequent years.
The actual income tax rate for most foreigners is 6%, but some more highly paid teachers may need to pay 13%. Therefore, in cases where teachers have been here for more than 183 days in the first tax year (i.e. they arrived before July 1st), then they qualify for partial refund being the difference between the 20% deducted, and the 6 or 13% payable.
The amount of your refund is calculated and told to you at the time that you file your return. You get notification that payment is available to be picked up through the post. It normally takes three to four months to get your payment. You can take your receipt and passport to the office at which you filed your taxes (in Taipei this is the Yenping Road office near Ximending) and pick up the cash straight away at the 'Payments Counter'. The payments counter closes at 4:00pm so if you arrive after this but before the 5:30pm closing of the office then you can pick up a pre-printed check from the filing desk and deposit this into your own bank account.
| kait wrote: |
| I have heard second hand that some people get their taxes refunded each year. Is this true, and if so, how? |
This would only be true if their employer was deducting more tax from their wage than necessary. As I mentioned above, some employers deduct 10% after the initial 183 days, when they only need deduct 6%. I think that they either do this because they are unsure of how much to deduct, or more likely because they want to ensure that you will be placed in good stead should you earn over the limit and actually need to pay 13%.
One final note. It is quite okay to allow your employer to handle your tax affairs, but make sure that you receive and keep all documents related to this. Particularly important is your monthly pay slip showing the total amount earned and exactly how much tax was deducted, and the fact that it was deducted for tax purposes. This way, if anything goes amiss you can prove that you have paid the taxes. If you can't prove that you paid the taxes by way of employer deductions from your wage then the tax office may quite reasonably ask you to pay the taxes - again!
There is some information, and a personal account of taxes available on this site. |
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kait
Joined: 17 Jun 2004
Posts: 93
Location: Lungtan, Taiwan
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| Posted: Wed Dec 29, 2004 9:38 am Post subject: |
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Thanks. It seems that I am out of luck with the refund thing. I kind of figured as much.  Well, I guess I'll just have to go to the doctor more often to get my money's worth. |
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