JFRV for 5 years... Why am I being taxed 18%?

ROC taxes, overseas payment of taxes, withholding rates, general tax liability issues, and other tax-related matters
Forum rules
While the moderators are happy to help point people in the right direction for legal assistance and to attempt to keep these forums civil and tidy, please bear in mind that an Internet forum is not the place for providing or receiving legal advice or for the creation of any attorney-client privileges or obligations. Also keep in mind that Forumosa and the moderators cannot conduct comprehensive reviews of all laws or legal concepts referenced or discussed within these forums – laws and regulations are updated and amended, interpretations do change, and sometimes the legal landscape can change very fast. Forumosa provides these legal forums for general informational purposes only. By using these legal forums, you agree that the information does not constitute legal or other professional advice and no attorney-client or other relationship is created between you and any other posters on these forums. DO NOT CONSIDER THE FORUMS TO BE A SUBSTITUTE FOR OBTAINING LEGAL ADVICE FROM A QUALIFIED LICENSED ATTORNEY.

Re: JFRV for 5 years... Why am I being taxed 18%?

Postby maowang » 23 Feb 2012, 16:40

Do we work at the same place?

From what the tax office sent another coworker, and from what I can gather, the provision was written for ARC holders without APRC or JFRV holders in mind. The rule never specified the difference and therefore ALL foreigners are subject to the employer's discretion regardless of residency. AT the same time the tax office confirmed that domiciled foreigners should be taxed 5%. It is a huge cock up that left a loop hole for employers to exploit.

My suspicions are that the employer is having cash flow problems and may be using the withholding for added liquidity. Just a hunch.
maowang
Chair-throwing Legislator (rēng yǐzi de lìfǎ wěiyuán)
Chair-throwing Legislator (rēng yǐzi de lìfǎ wěiyuán)
 
Posts: 379
ORIGINAL POSTER
Joined: 29 May 2004, 10:00
Location: Seattle, WA, USA
1 Recognized(s)



Re: JFRV for 5 years... Why am I being taxed 18%?

Postby maowang » 23 Feb 2012, 17:21

It seems like a provision that is being used to skirt Article 26 of the Labor Standards Act. This is how my employer intends to use it.

Article 26 An employer shall not make advance deduction of wages as penalty for breach of contract or as indemnity.
maowang
Chair-throwing Legislator (rēng yǐzi de lìfǎ wěiyuán)
Chair-throwing Legislator (rēng yǐzi de lìfǎ wěiyuán)
 
Posts: 379
ORIGINAL POSTER
Joined: 29 May 2004, 10:00
Location: Seattle, WA, USA
1 Recognized(s)



Re: JFRV for 5 years... Why am I being taxed 18%?

Postby Kawa » 23 Feb 2012, 19:11

It's been my first year of work in Taiwan, and my employer also withheld 18% the first 6 months of 2011 and 6% for the rest, which makes a 12% annual average.

However, I found this in the Income Tax Act:

"The tax brackets and rates of consolidated income tax are as follows:
1. If the annual total net consolidated income is less than or equal to NT$ 500,000, the tax rate shall be 5%.
2. If the annual total net consolidated income is above NT$ 500,000 to NT$ 1,090,000, the income tax payable shall be NT$ 25,000 plus 12% for the portion of income more than NT$ 500,000.
3. If the annual total net consolidated income is above NT$ 1,090,000 to NT$ 2,180,000, the income tax payable shall be NT$ 95,800 plus 20% for the portion of income more than NT$ 1,090,000.
4. If the annual total net consolidated income is above NT$ 2,180,000 to NT$ 4,090,000, the income tax payable shall be NT$313,800 plus 30% for the portion of income more than NT$ 2,180,000.
5. If the annual total net consolidated income is above NT$ 4,090,000, the income tax payable shall be NT$ 886,800 plus 40% for the portion of income more than NT$ 4,090,000."

Is this applicable to everybody or only Taiwanese citizens? If yes in my case that would mean a huge refund in May :cool:
Kawa
Shoe-wielding Legislator (huīwǔ xiézi de lìfǎ wěiyuán)
Shoe-wielding Legislator (huīwǔ xiézi de lìfǎ wěiyuán)
 
Posts: 204
Joined: 25 Jun 2010, 23:44
Location: Xindian
8 Recognized(s)



Re: JFRV for 5 years... Why am I being taxed 18%?

Postby Okami » 23 Feb 2012, 19:17

I think Maowang's problem is that he'd like the money now because he actually has a family. Nothing worse than not having enough money when you have kids. There also seem to be some issues with his place of employment.
Professor Walter Williams has remarked that he’s glad he went to college “before it became fashionable for white people to like black people.”
Forumosan avatar
Okami
Second Landlord (èr fáng dōng)
Second Landlord (èr fáng dōng)
 
Posts: 2549
Joined: 21 Sep 2002, 20:10
8 Recommends(s)
22 Recognized(s)



Re: JFRV for 5 years... Why am I being taxed 18%?

Postby Charlie Phillips » 23 Feb 2012, 19:32

Kawa wrote:It's been my first year of work in Taiwan, and my employer also withheld 18% the first 6 months of 2011 and 6% for the rest, which makes a 12% annual average.

However, I found this in the Income Tax Act:

"The tax brackets and rates of consolidated income tax are as follows:
1. If the annual total net consolidated income is less than or equal to NT$ 500,000, the tax rate shall be 5%.
2. If the annual total net consolidated income is above NT$ 500,000 to NT$ 1,090,000, the income tax payable shall be NT$ 25,000 plus 12% for the portion of income more than NT$ 500,000.
3. If the annual total net consolidated income is above NT$ 1,090,000 to NT$ 2,180,000, the income tax payable shall be NT$ 95,800 plus 20% for the portion of income more than NT$ 1,090,000.
4. If the annual total net consolidated income is above NT$ 2,180,000 to NT$ 4,090,000, the income tax payable shall be NT$313,800 plus 30% for the portion of income more than NT$ 2,180,000.
5. If the annual total net consolidated income is above NT$ 4,090,000, the income tax payable shall be NT$ 886,800 plus 40% for the portion of income more than NT$ 4,090,000."

Is this applicable to everybody or only Taiwanese citizens? If yes in my case that would mean a huge refund in May :cool:


You may file your taxes in May but you'll have to wait about 6 months for your refund.
"Why do you want gas? It's hot. You can have cold showers" ~gas delivery man height of summer, 2010.

"Why you wear so many clothes? You are foreigner. Foreign countries are cold." buxiban owner, depth of winter 2011.
Forumosan avatar
Charlie Phillips
Mahjong Maniac (májiàng mí)
Mahjong Maniac (májiàng mí)
 
Posts: 2153
Joined: 21 Nov 2005, 14:53
Location: Woods by name but now a city
88 Recommends(s)
167 Recognized(s)
In Taiwan since: 23 Mar 2003



Re: JFRV for 5 years... Why am I being taxed 18%?

Postby stare » 24 Feb 2012, 10:41

A question I have still remains unanswered.

If I leave before the 183 days is up, is my employer responsible for the unpaid tax.

For example:
A teacher works for 5 months and pays 6% tax on his income. When, according to what I understand, he should be paying 18%. There is now 12% of unpaid taxes. Is the school now responsible for paying this 12% of tax?

If they are, then why?

Wouldn't your income be calculated over the year? As opposed to just part of the year? Is there any way to find out if your employer is responsible for this unpaid portion.
stare
Shoe-wielding Legislator (huīwǔ xiézi de lìfǎ wěiyuán)
Shoe-wielding Legislator (huīwǔ xiézi de lìfǎ wěiyuán)
 
Posts: 243
Joined: 31 May 2004, 11:23
Location: Taichung



Re: JFRV for 5 years... Why am I being taxed 18%?

Postby Kawa » 24 Feb 2012, 14:04

Charlie Phillips wrote:You may file your taxes in May but you'll have to wait about 6 months for your refund.


As long as it's coming back into my pocket... :D
Kawa
Shoe-wielding Legislator (huīwǔ xiézi de lìfǎ wěiyuán)
Shoe-wielding Legislator (huīwǔ xiézi de lìfǎ wěiyuán)
 
Posts: 204
Joined: 25 Jun 2010, 23:44
Location: Xindian
8 Recognized(s)



Re: JFRV for 5 years... Why am I being taxed 18%?

Postby Satellite TV » 07 Mar 2012, 10:10

maowang wrote:That would be fine... If I wasn't supporting a family. I have two citizen dependents right now. Diapers alone get pretty pricy... if the washing machine died or the car had problems then I'd be in deep. Bills are monthly. If I have anything extra I usually put it in a mutual fund that I already have set aside. Now, I may have to sell funds.


Well you could save a lot of money by using washable nappies instead of throw away diapers.
It's such a pleasure living in a world where everyone is in such a hurry to be outraged over someone else’s trivial comments
Forumosan avatar
Satellite TV
Entering Second Childhood (èrdù tóngnián qī)
Entering Second Childhood (èrdù tóngnián qī)
 
Posts: 7071
Joined: 18 Jun 2004, 11:10



Re: JFRV for 5 years... Why am I being taxed 18%?

Postby hetbellz » 28 Jun 2012, 17:46

Accountant: " If we don't tax you 18% for the first six months, the company will get a fine !"

Hetbellz: " Really? Because I just took a look a the Tax Act and ..."

Accountant : " Our lawyer will give you a call."

Hetbellz: :notworthy:
hetbellz
38 Posts? I'm a bimbo, baby!
 
Posts: 38
Joined: 31 Dec 2009, 11:43
1 Recognized(s)



FRIENDLY REMINDER
   Please remember that Forumosa is not responsible for the content that appears on the other side of links that Forumosans post on our forums. As a discussion website, we encourage open and frank debate. We have learned that the most effective way to address questionable claims or accusations on Forumosa is by engaging in a sincere and constructive conversation. To make this website work, we must all feel safe in expressing our opinions, this also means backing up any claims with hard facts, including links to other websites.
   Please also remember that one should not believe everything one reads on the Internet, particularly from websites whose content cannot be easily verified or substantiated. Use your common sense and do not hesitate to ask for proof.
Previous




Proceed to Taxes



Who is online

Forumosans browsing this forum: Exabot [Bot] and 1 visitor

One-half of life is luck;
the other half is discipline
and that’s the important half,
for without discipline
you wouldn’t know what to do with luck.
-- CARL ZUCKMEYER