In a bid to attract and retain foreign talent, the Ministry of Education (MOE) announced the launch of the International Industrial Talents Education Special (INTENSE) program on May 13. This new scholarship program offers significant financial incentives to skilled foreign students.
Scholarship Details
The INTENSE program, funded by the National Development Fund, provides a yearly scholarship of NTD 100,000 for up to two years. In addition to the scholarship, students will receive a monthly living allowance of at least NTD 10,000 over the two years, totaling NTD 440,000 (USD 14,158).
Commitment to Work in Taiwan
In return for the scholarship, recipients are required to work in Taiwan for two years after graduation. This commitment helps integrate foreign talent into Taiwan's workforce, contributing to the local economy and industry.
Tax Implications for Foreigners in Taiwan
With specific regulations that differ based on residency status. Here are the key points foreign talents need to be aware of:
Residency Status and Tax Obligations
In Taiwan, your tax obligations are determined by your residency status. If you stay in Taiwan for 183 days or more in a calendar year, you are considered a tax resident.
Tax Rates and Deductions
Residents benefit from progressive tax rates ranging from 5% to 40%, while non-residents face a flat rate of 18% on their Taiwan-sourced income. Residents can also take advantage of various deductions and exemptions, which can significantly reduce taxable income.
Filing Requirements
Tax returns must be filed between May 1 and May 31 for the previous year. Del Sol CPA Firm can assist you with timely and accurate filing to avoid penalties and ensure you leverage all available deductions.
Work Permits for Expats
Securing a work permit is a critical step for any foreigner wishing to work in Taiwan. The process varies depending on your job and qualifications:
Types of Work Permits
Taiwan offers several types of work permits, including those for professionals. The requirements and application procedures vary for each type.
Application Process
Generally, your employer must apply for your work permit on your behalf. Required documents typically include your passport, proof of qualifications, employment contract, and a health check.
Duration and Renewal
Work permits are usually issued for up to three years and can be renewed. It’s crucial to start the renewal process early to avoid any legal issues or interruptions to your employment.
Alien Resident Certificate (ARC)
The ARC is essential for foreigners residing in Taiwan for more than six months. It serves as an identification document and is necessary for various activities such as opening a bank account or getting a phone number.
Eligibility and Application
To qualify for an ARC, you must have a valid work permit or be enrolled as a student. The application is made at the National Immigration Agency, and required documents include your passport, work permit, and a completed application form.
Validity and Renewal
The ARC is typically valid for one to three years, depending on your employment contract or study program. Like the work permit, it must be renewed before expiration. Del Sol CPA Firm can assist with the renewal process to ensure continuous compliance.
Benefits of an ARC
Holding an ARC offers several advantages, including eligibility for Taiwan's National Health Insurance (NHI), which provides comprehensive medical coverage. It also facilitates the process of applying for a driver's license, renting property, and more.
How Del Sol CPA & Services Can Help
At Del Sol CPA, we specialize in assisting expats with their tax, work permit, and ARC needs in Taiwan. Our services include:
Tax Advisory and Filing
Personalized tax advice and filing services to ensure compliance and optimize your tax situation.
Work Permit Assistance
Guidance and support through the work permit application and renewal process.
ARC Application Support
Assistance with the ARC application and renewal to ensure you have the necessary documentation and meet all requirements.
By partnering with Del Sol CPA Firm, you can focus on your career and personal life while we handle the administrative complexities. Contact us today to learn more about how we can support your journey in Taiwan.
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