Job Discussion Forums

[Pop Fly]

I am looking into this as I write, but right now, I am unclear about whether one needs to be on the books or simply in country by June 30th. But mjed9 (not Brian) explained it very clearly as far as what will happen if you miss this date. Count on 6 weeks of paperwork before being officially "on the books".

[mjed9]

Let's say you arrive on June 1st 2004. You will be taxed for the first 163 days (6 months) at 20% and then your tax rate will drop to about 6-10% and remain there (around Dec 1st following the example).

The following Feb 2005 you can file for those first six months and get the money back.

Hope this helps

[Fortigurn]

Thanks guys. Six weeks is a long time to get ready. I'm going to have to work things out carefully here.

[brian]

I will wade into this. I had an issue with a previous employer over tax and therefore had dealings with the boss at the Taipei tax office. She is a very nice, but tough lady and we spent some time discussing tax issues. I will tell you what she told me and then the boys can add their comments.

Provided that you have been in Taiwan for more than 183 days in your first tax year you will only need to pay the 6-13% (dependant upon your level of earnings). The number of days you are in Taiwan is calculated according to the entry/exit stamps in your passport, therefore starts counting from the day you arrive in Taiwan not from the day you start working. Therefore, if you actually arrive in Taiwan before July 1st then you should be okay. Generally your boss will deduct the higher rate up until the 183 day mark and will then reduce deductions down to the lower rate after this. Provided that you are here for longer than the 183 days, you can then claim a rebate after February the following year.

The complicating factor is that should you need to leave for a visa or something then you will lose some days from this count (as you will be out of the country) which would put you under the minimum. As such I would recommend that you should aim to arrive any time before June 20th or so to make sure that you have enough days left should you need to do a visa run or something.

I am as sure of the above as I can be, and have a had a number of years of experiece whereby the above proved to be correct.

Now, something that the Tax office told me that doesnt make a lot of sense is as follows. Read it but dont let it complicate the issue for you:

Apparently, provided that you will make the 183 day deadline, you do not need to pay the higher tax rate. You can start paying at 6%. If you happen to leave the country before the end of 183 days then you are required to go to the tax office to make up the difference, but there are no checks at the airport to make you do this. As I say, this doesnt make much sense to me but she assured me that it was correct and I guess that she should know.

I agree with mjed9 though! It is nice to get your tax rebate at the end of the tax year. Dont fight it if your employer wants to take the higher rate, BUT DO ENSURE THAT YOU GET PAY SLIPS THAT CLEARLY STATE ANY DEDUCTIONS FOR TAX THAT THEY MAKE. You will need these in case of a dispute and were probably the major factor that enabled me to win my case.

[Pop Fly]

Well answered Brian. Definitive.

About the tax office near Hsi Men Ding. I have always been amazed at the turning of the wheels on the social machine here in Taiwan. It is efficient in it's chaos. Like the traffic, kinda.....

1st surprise: No line-up
2nd surprise: The friendliest and most helpful of clerks.
3rd surprise: Provided you can get your school to put their chop on a form as a form of gaurantor, you can get your rebate in 5 days. You can do this once every 5 years. Very handy if you are planning on leaving the country between Feb. and May. (Or really need to get to Thailand)

Getting my tax rebate amounted to over 1 months salary....I got here in April. It was sooooooooo sweet. Now, if only Kojen had given me enough hours to qualify for their "bonus" , well....that's another thread.

[Fortigurn]

Fantastic guys, that's a great help, thanks.

[dez]

[Pop Fly]

[mjed9]

[dez]

Thanks for all the info Popfly. It's been a great help. I'm looking into some jobs in Korea and Vietnam. If things go a certain way with that I will just come to Taiwan and look then and be able to do my demo.