I am so confused - Taiwan Taxes

ROC taxes, overseas payment of taxes, withholding rates, general tax liability issues, and other tax-related matters
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I am so confused - Taiwan Taxes

Postby misterpoh » 10 May 2012, 21:33

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Re: I am so confused - Taiwan Taxes

Postby dnwolfgang » 10 May 2012, 23:45

"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."

If you make 100K AUD ~= 3M Taiwan Dollar, that's 313800 + 820000*.3 == 559800 NT or 18850 AUD

And you will have to pay the national health insurance, 2K NT / mo (I think that's the cap)
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Re: I am so confused - Taiwan Taxes

Postby tommy525 » 10 May 2012, 23:57

Great info above !

Meantime also important to note that you must be physically present in taiwan (for whatever reason) at least 183 days of the calendar year to get the local tax rate (and avoid paying a flat 20pct) and to avail yourself of the exemptions and deductions .

Your company is entitled to withhold taxes from you each month at 20pct , until 183 days have passed of each calendar year. They are liable for any shortfall on those taxes if you leave before staying at least 183 days of the year.
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Re: I am so confused - Taiwan Taxes

Postby the bear » 11 May 2012, 08:42

Those rates are old no? It's 18% not 20%.
I always wanted to be somebody, but now I realize I should have been more specific.
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Re: I am so confused - Taiwan Taxes

Postby misterpoh » 11 May 2012, 09:35

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Re: I am so confused - Taiwan Taxes

Postby tommy525 » 11 May 2012, 12:37

Unlike the USA, I don't think taiwan taxes living allowance as personal income. But there may be restrictions. For example, best if the company pays for your rent directly , rather then to you, to pay your landlord.

IN the USA, this is treated as personal income regardless.

IF the company gives you a housing allowance (or pays the landlord directly) or a car allowance, its all personal income FAIK.
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Re: I am so confused - Taiwan Taxes

Postby misterpoh » 11 May 2012, 12:41

Thanks Tommy,

I read up on the KPMG website that is a company pays directly, its exempted from taxes. But as an individual to pay, from what i can gather is a taxable stream of income..

Not sure if moving to Taiwan is worth the hassle..
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Re: I am so confused - Taiwan Taxes

Postby tommy525 » 11 May 2012, 13:50

If you believe moving to Taiwan is a hassle and have alternatives, then I say you should NOT do it. It wouldnt be worth it. Its like marriage. You have to be 100pct going in to even have a chance to make it a success.
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Re: I am so confused - Taiwan Taxes

Postby misterpoh » 11 May 2012, 15:03

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Re: I am so confused - Taiwan Taxes

Postby tommy525 » 11 May 2012, 15:23

misterpoh wrote:Thanks for the advise Tommy.

Moving to Taiwan is an immediate career progression for me and should allow me to achieve the desired results.

Just so confused with the taxation regulations there.


TAiwan is pretty different from OZ. IT will take some getting used to. The taxes are not that hard, much easier then American taxes. And over-all should be much less then in Oz (or the USA).

good luck on your career progression. Hope it all works out for you.
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