Living and working in Taiwan as an expat can be a sublime experience; mountains, oceans, amazing food, nightlife and culture, friendly people, and a relatively low cost of living – what more could you ask for? It’s no wonder so many who come for short-term visits end up staying for good. But along with long-term residence in Taiwan come the realities of living and working in a foreign country – not least of which is making sure you’re in compliance with local tax laws. This article is the first in series covering the essentials of Taiwan tax procedures. We will cover:
Understanding your tax residency status.
Calculating how much tax you need to pay, and what income must be reported.
A breakdown of exemptions and deductions that can reduce your taxable income.
Everything you need to know to file and pay your income taxes.
Guidance, tips and tricks on how to make the process easier.
In this article, we’ll focus mainly on income earned from salary and wages, and limit the scope of information to the absolute essentials for standard tax reporting scenarios; In the next part of this series, we’ll look deeper into other sources of income and how to handle more complex tax situations.
We hope that you will find all the information you need to handle your Taiwan tax obligations with confidence! Remember, though, that if you ever have any questions or doubts about your tax situation, it’s never a bad idea to consult a licensed tax professional for advice. Highly qualified guidance from Del Sol CPA and Associates is just an email, LINE message or phone call away if you need us.
Key Takeaways:
Tax residency status has a major impact on your tax rate and withholding tax rate.
Filing period: between May 1st and May 31st
Expect a high withholding tax rate (18%) on income from freelance or short-term jobs, especially if you are a new arrival.
Taiwan uses a progressive income tax structure.
Filing as an individual resident alien can be very easy, and done in under 20 minutes at the tax office!
If you are married (especially to a Taiwanese national), your tax situation becomes significantly more complicated
Please note that tax laws and regulations can change over time, so it's essential to consult a tax professional or the most recent Ministry of Finance, R.O.C guidelines for the latest information and advice on your specific situation.
Copyright © 2023 by Del Sol CPA Services
Comments