+160 days and taxes

[nicosasz]

Let's say you reside in Taiwan more than 160 days a year ( whatever the visa, it's not the matter here) with multiple mid term trips to foreign surrounding countries ( where you work )

you get paid for a work you do outside Taiwan and use this money to live in Taiwan.

Nornally you should pay taxes in Taiwan right ?
But can we pay taxes in Taiwan while living there but not working ?

Thanks !

Nick

[CraigTPE]

AFAIU, your visa type may matter. I don't think it's as simple and straightforward as you suggest, but not sure.

If you are here on a visitor visa, making all the visa runs etc, and you are being paid in another country, I don't see how Taiwan could have any income tax claim. In fact, as long as you are bringing money IN to the country to spend, not making money in the country illegally, I would think they would be happy. If they are paying you into an account in Taiwan, it might be more complicated.

You could check with the proper authorities for a definitive answer.

[nicosasz]

Thanks Craig !

I will check with the tax office then.

Meanwhile, I guess some members here are working in relocation companies for foreigners.
Anyone could leave some contact to discuss ?

Thanks

Nick

[tommy525]

Let's say you reside in Taiwan more than 160 days a year ( whatever the visa, it's not the matter here) with multiple mid term trips to foreign surrounding countries ( where you work )

you get paid for a work you do outside Taiwan and use this money to live in Taiwan.

Nornally you should pay taxes in Taiwan right ?
But can we pay taxes in Taiwan while living there but not working ?

Thanks !

Nick

Ok my two cents:

IF you have a visitor visa it may say on it something like "not allowed to work without approval". Which means that working may get you kicked out of the country. This means working IN Taiwan.

If you stay less then 183 days in the calendar year in Taiwan , technically you do not have to file a tax return if you do not work in Taiwan. But if you do stay longer then 183 days , technically you do have to file.

But this wont be an issue unless you overstayed your visa. IF you overstay by even one day, they could require you to go to the tax office and they may assess you a completely arbitrary number that they think up on the spot as to what taxes you need to pay. You will not be able to leave until you get the OK from the tax office. This can get messy.

If you do NOT obtain money from working IN Taiwan you are Tax Exempt, unless you make more then six million Taiwan dollars a year. Theres a separate thread on this. Taiwan used to not care at all about income earned outside of Taiwan, now they are starting to care. I believe you have to file if you make more then one million taiwan dollars abroad but not pay any taxes until past the six million taiwan dollar mark.

Therefore my suggestion is (say if you are going to live in taiwan for a few years but will continue to make money outside of Taiwan) :

1. file a TAX EXEMPT statement with the tax office every calendar year. This way if you should ever need to see them, it would be much easier.

2. leave always before your visa expires, do not wait till the last day. Because even if there is a typhoon or something , it will still be overstaying.

[traveller77]

If you do NOT obtain money from working IN Taiwan you are Tax Exempt, unless you make more then six million Taiwan dollars a year.

So if I sit in my taiwanese girlfriends apartment and I actually work remote over the internet for a company in my country, would that qualify as "not working IN Taiwan"?
I actually do the work on a computer thats physically located in my countries office. I just connect to that PC from Taiwan. Nothing about my work involves Taiwan and my company has no branch in Taiwan.
I mean I am not here because of my work, just because of the girlfriend.

Do you think I could get tax exemption in this case? I know that I do not need a work permit, I emailed the Council of Labour Affairs about that.

And I want to note that I am here on 90 day visa free entry. So I do a visa run every 90 days. Not sure if it's even officially possible to do remote work on visa exempt entry.
I am a little worried that the airport immigration will start asking questions after a while. Be it tax or visa.

thanks for your help!

[tantrum]

Where will you pay tax, if not Taiwan?

[traveller77]

Where will you pay tax, if not Taiwan?

I pay my countries normal taxes. Which are quite high. Combined with Taiwan taxes it would be unbearably high.

As far as I can tell from the FAQ on the taiwanese Ministry of Finance website, I think I would be tax exempt:

Q: What is the scope of individual overseas income?
A: According to the Income Basic Tax Act, individual overseas income shall be that not derived from the sources in the ROC under the provision of Article 8 of the Income Tax Act and not from the sources in the Mainland Area under the provisions of Act Governing Relations between Peoples of the Taiwan Area and the Mainland Area.

Q: Is an individual who has overseas income greater than or equal to 1 million NT dollars necessarily required to pay income basic tax?
A: No. An individual who has overseas income greater than or equal to 1 million NT dollars but his or her basic income is less than or equal to 6 million NT dollars is not necessarily required to pay income basic tax.

I will call the Finance Ministry anyway. I just thought I would check the situation as thouroughly as possible before I call them, and tommy525 seemed to have a pretty good understanding of the whole matter.

[CraigTPE]

I am a little worried that the airport immigration will start asking questions after a while. Be it tax or visa.

This is always a possibility when "living" in a country under "tourist" status.

[traveller77]

This is always a possibility when "living" in a country under "tourist" status.

Exactly what I am thinking. So today I sent an email to the Ministry of Foreign Affairs, asking just that about my specific case. No reply yet, but I would only expect it in a few days. Otherwise I'll just call them. All the ministries seem to have some english speakers available to talk to.

Like I said before I like to check things as much as possible before I call the taiwanese government and it is a good reference for other people that might have the same questions.

I will specifically report my findings on the tax issue since this is the tax section.

[the bear]

If you have no intention of applying for an ARC you have no problem. Unlike in earlier years the only time tax payment is enforced here for foreigners is when you apply for a new ARC for which you need a tax certificate. i.e. if you haven't paid your tax you won't get a new ARC. Immigration now has zero interest in tax issues since a tax clearance stamp is no longer required in your passport.