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ashajade
Joined: 26 Dec 2004
Posts: 6
Location: NZ
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 Posted: Sun Jan 23, 2005 10:11 pm Post subject: Tax Return In Taiwan |
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This is an extract from the DD Dragon website FAQs page concerning tax in Taiwan. Is this true?
10 What taxes will I have to pay?
There is a flat tax rate in Taiwan, regardless of gross annual earnings, of 6%. However, all foreign workers (including teachers) get taxed 20% for the first six months, and 10% thereafter. In other words, you are overtaxed by 14% for the first six months, and 4% thereafter. At the end of your contract you will be able to claim back all the taxes you have paid above the normal rate of 6%.� All that you will need to do is visit your local tax office about a week before your intended departure date and submit your monthly pay slips. Your tax refund will be paid promptly, in advance of your departure.
Also I am looking into working for this group, however, there isn't really any good info in the forums concerning their credibility. They seem like a large and well established company, does anyone know anything about them?
Thanks for any response 
Ashajade |
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matchstick_man
Joined: 21 May 2003
Posts: 244
Location: Taiwan
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| Posted: Mon Jan 24, 2005 2:03 am Post subject: |
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| Yeah, it's true. I would have said no to collecting it in person six months a go but a co-worker's friend did exactly that. |
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clark.w.griswald
Joined: 06 Dec 2004
Posts: 2056
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| Posted: Mon Jan 24, 2005 1:51 pm Post subject: Re: Tax Return In Taiwan |
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| ashajade wrote: |
10 What taxes will I have to pay?
There is a flat tax rate in Taiwan, regardless of gross annual earnings, of 6%. |
This is incorrect.
The 6% tax rate applies to individuals with a taxable income of less than NTD300,000 per annum. Taking into account deductions, this is the area that most newbie teachers fall into. If you earn between NTD300,000 to NTD800,000 then the tax rate jumps to 13%. There is a scale up from there with the highest tax rate being 40%.
You can check out the rate here.
| ashajade wrote: |
| However, all foreign workers (including teachers) get taxed 20% for the first six months, and 10% thereafter. In other words, you are overtaxed by 14% for the first six months, and 4% thereafter. At the end of your contract you will be able to claim back all the taxes you have paid above the normal rate of 6%.� |
This is true in some instances but is a little oversimplified and therefore somewhat misleading.
In order to be entitled to a partial refund of the 20% paid during your first 183 days, you would need to be in the country for more than 183 days in your first tax year. Therefore, provided you arrive before the end of June then you know that you will be entitled to the partial refund when you file your taxes the following year.
If however you arrive later in the year and cannot make the 183 days in country before December 31st, then you forfeit the full 20% paid and are not entitled to any refund.
Therefore make sure you arrive before the end of June to be safe.
| ashajade wrote: |
| All that you will need to do is visit your local tax office about a week before your intended departure date and submit your monthly pay slips. Your tax refund will be paid promptly, in advance of your departure. |
This is a bit misleading too. You do not need to present your payslips (although you should keep a copy of these showing any tax deductions each month). What you need to show is your 'Tax Withholding Statements'. By law your employer must provide these to you prior to tax time. You cannot lodge your taxes without them.
The refund check may not be available until months after you file. You can either designate an agent (friend) to pick up the check when it arrives, or you can do a speedy return. You are only entitled to speedy return once every five years or something.
| ashajade wrote: |
| Also I am looking into working for this group, however, there isn't really any good info in the forums concerning their credibility. They seem like a large and well established company, does anyone know anything about them? |
You could do worse. According to Buxiban.com they have a two star rating which is less than average. Why do you need an agent though? Why not just apply for jobs directly through a site like Buxiban.com and deal with the schools yourself? |
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Aristotle
Joined: 16 Jan 2003
Posts: 1388
Location: Taiwan
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| Posted: Tue Jan 25, 2005 4:38 am Post subject: |
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Do not wait until just before you leave to file your return. If there are any problems you will not have enough time to deal with them.
Employers in Taiwan are notorious for pocketing foreign worker's tax withholdings. Keep accurate records of everything that has to do with you employment and employer, be sure to file your return on time.
Good luck,
A. |
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clark.w.griswald
Joined: 06 Dec 2004
Posts: 2056
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| Posted: Tue Jan 25, 2005 12:37 pm Post subject: |
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| Aristotle wrote: |
Do not wait until just before you leave to file your return. If there are any problems you will not have enough time to deal with them.
Employers in Taiwan are notorious for pocketing foreign worker's tax withholdings. Keep accurate records of everything that has to do with you employment and employer, be sure to file your return on time. |
Finally something we can agree on! |
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timmyjames1976
Joined: 26 Jan 2005
Posts: 148
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| Posted: Mon Feb 28, 2005 11:14 pm Post subject: |
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| 20%....ouch....that is nice to know when figuring out cost of living, thanx from a newb |
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