Taiwan Taxes for foreign teachers are not cut and dry and depends on the amount of time you spend in Taiwan each calendar year.
The Basics On Taxes In Taiwan
Foreigners working with an ARC in Taiwan will have their wages taxed at a rate of 18% until they have stayed more than 183 days during a tax year. After 183 days, the government reduces your rate from 18% back to 5%. As for the 183 days that you paid 18%, which is 13% more than the normal rate ,you will get this difference back when you file your taxes. Please note that the 183 days being from January 1 of each year.
What is a Taxable Year?
The taxable year in Taiwan is from January 1st to December 31st. Taxes for the current year are filed in May of the following year. If you stayed in Taiwan 183 days in the previous year, and continue to work into the next year, your tax rate will go back to 18% until you stay 183 days for that new year. IF you arrive in Taiwan after July 2, then you will have no chance in reaching the 183 day threshold.
Count Your Days
Taiwan teachers should always keep count the number of days they have stayed in Taiwan each calendar year. After 183 days, you are eligible for a 5% income tax rate. There are instances of teachers missing falling just short of 183 days and thus missing out on a considerable tax rebate.
Paying Taxes and Obtaining Refunds
Your taxes for the current year are filed before May 31st of the next year. Refunds are usually available by late November. If you need to pay any amount, payments can be made at any local bank in Taiwan. The following is a check list of what you will need to bring when you file your return at your nearest tax office:
- Earnings Statement from your school
- Previous year’s tax slip
If you are leaving a job anytime during the year, you can go to the tax office with the above documents and they will process your taxes and return if there is any. The return should be available within 7-10 days. You can have them deposit it into your Taiwan bank account, or have a check sent. Ask for your options.
When to File your Taiwan Tax Return
Any foreigner staying in Taiwan for 183 days or more shall, before May 31 of the current year, file the annual income tax return for the preceding year. However if you plan to leave Taiwan in the interim of the year, and will not return within the same year, you must file your income tax return at least one week prior to your departure date.
When is the Tax Deducted
For most individuals staying in Taiwan, your income tax payable should be withheld directly at the time of payment by your employer in accordance with the appropriate tax rate (The employer is responsible for preparing a “Tax Withholding Statement” for you in order for you to file a tax return) Furthermore, other income received for other services rendered within the ROC, or any income which has no tax withholding statement, such as the income occurring from property transaction, occasional trade, interest from mortgages, etc., should be declared and the tax paid before your departure.
NOTE: Some employers may handle this differently. Some schools will withhold 18% every month and then you will get a larger refund back later when you file. Other schools may withhold only 5%, however, if you leave Taiwan before 183 days, the employee will have to “pay back” the school the 13% difference of earnings because the tax percentage will now be 18%.
For more detailed and complete information on taxes use the following link to the Taiwan Government Tax website.
Government Tax offices
Kaohsiung City Taxation Office
National Taxation Bureau of Kaohsiung, Ministry of Finance
No. 148, Guang Jhou 1st Street, Lingya District 80265, Kaohsiung City, Taiwan
**(located behind the Cultural Center)
Telephone: 886-7-7256600 Email: [email protected]
Office Hours: 8:00am-12:00pm/1:30pm-5:30pm, Monday-Friday
Chinese address: 高雄市苓雅區廣州一街148號
Kaohsiung County Taxation Office
No. 136, Sec. 2, Guotai Rd., Fengshan City, Kaohsiung, Taiwan , R.O.C.
Phone Number: 07-7410141
Fax Number: 07-7464416
Official Website: www.khtb.gov.tw
Taichung City Taxation Office
No. 99-1, Minchiuan Rd., Shi Chiu, Taichung, Taiwan 403, R.O.C.
Phone Number: 04-22296181
Fax Number: 04-22282613
Official Website: www.tctax.gov.tw
Taichung County Taxation Office
No. 219, Jungshan Rd., Fengyuan City, Taichung, Taiwan 420, R.O.C.
Phone Number: 04-25262172
Fax Number: 04-25200541
Official Website: www.tcftax.gov.tw
Taipei City Taxation Offices
The Tax Administration has 13 branches in Taipei providing services to residents. Divided according to the city’s administrative districts, these 13 branches are Chungcheng, Chungpei, Chungnan, Peitou, Wanhua, Hsinyi, Ta-an, Sungshan, Nankang, Wenshan, Shihlin, Neihu, and Tatung divisions.
Phone Number: Check website for closest branch
Fax Number: Check website for closest branch
Official Website: www.tpctax.gov.tw
Taipei County Taxation Office
No. 143, Sec. 1, Choshan Rd., Banchiau City, Taipei, Taiwan 220, R.O.C.
Phone Number: 02-89528200
Fax Number: 02-89528034
Official Website: www.tpctax.gov.tw