[Income Taxes] 183 day Rule

ROC taxes, overseas payment of taxes, withholding rates, general tax liability issues, and other tax-related matters
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Re: [Income Taxes] 183 day Rule

Postby b4rodrig » 15 Feb 2012, 12:39

jlick wrote:Withholding must be paid within 10 days of the payment, so if you are paid monthly, your employer has to pay withholding monthly.

Thanks for the quick reply, that's really useful information. Would you also happen to know if it is illegal or maybe what kind of penalties/ disincentives there are under the new rule if a Buxiban owner wants to withhold at a standard rate for a foreign English teacher those first 183 days? I was at the tax office today but forgot to ask that one. Anyway, if anyone knows smething about this, I would appreciate it.

@plasmatron, I believe you are correct about the sliding rate based on income, I'm not sure why 6%, or rather 5% as it has been changed to, is referenced so often. I would guess most English teachers would make enough to be taxed @ 12%, and the tealit article states that 13% (now 12%) is the most common.
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Re: [Income Taxes] 183 day Rule

Postby Ovechkin » 23 Mar 2012, 01:01

I have a question about the return. so technically jan 1, 2013, residents are allowed to file taxes for year 2012. say I started work jan 1, 2012, from jan-june, I'd be taxed 20%, and then july- dec, I'd be taxed at 6%, then I'd get a refund for the 14% from jan-june correct? how long does it take to get the money? is it in the form of a direct bank transfer or something like a physical check? sorry this thread is extremely long, maybe this has been answered before?
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Re: [Income Taxes] 183 day Rule

Postby the bear » 23 Mar 2012, 09:59

Ovechkin wrote:I have a question about the return. so technically jan 1, 2013, residents are allowed to file taxes for year 2012. say I started work jan 1, 2012, from jan-june, I'd be taxed 20%, and then july- dec, I'd be taxed at 6%, then I'd get a refund for the 14% from jan-june correct? how long does it take to get the money? is it in the form of a direct bank transfer or something like a physical check? sorry this thread is extremely long, maybe this has been answered before?


Yes, it takes 4 months to get the money. You can opt for a direct credit, have a bank cheque mailed to you, or swing by the tax office to pick it up, or have a proxy pick it up.
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Re: [Income Taxes] 183 day Rule

Postby ub4me » 08 Jul 2012, 15:50

I'd like to ask some questions:
- I came Taiwan in September 2010 for studying (Master degree in Mechanical Engineering) and I am going to graduate on this 18th July. I've already found a job (~35.000NT$) here and will start my work from August or September so I have to - pay 13% for income tax, right?
- And is there any problem if I come back my country about 20 days (from 6/8 to 25/8) before starting my work? (My ARC expired date is 1st September)
- For a foreigner working at Taiwan, how much money do I have to pay for insurance fee?
I have no experience about these stuff.
Please help me.
Thanks in advance!
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Re: [Income Taxes] 183 day Rule

Postby madzchloe15 » 13 Nov 2012, 08:53

hi!!! iam also confused regarding that rule.iam a factory worker i finished my 3yrs contract in year 2008 of march..but then i go back in same company september 2008 after 2 or 3mos my broker told me that I need to pay tax at sum nt$23.000 OMG thats unlawful really..but I have nothing to do but to pay.however i finished again my 3yrs contract I went home sept.2011 in that long years i only received once refund of my tax until now I don't receive another tax refund i knew I'll still have one refund..i ask my co worker to update and ask our broker about my tax he said that I am not in the list who will receive tax this year...thats unfair ..so please help me to get my tax..thanks..(madz)
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Re: What to do

Postby michal.slawik » 20 Feb 2013, 12:33

scomargo wrote:This is probably the most commonly asked question I've seen in Taiwan. Hopefully this page will help.

http://www.tealit.com/taxes.htm

I have been to Taiwan since 2011 and I have ARC expire date 2013, July 31st (so over 183 days) but my school still takes 18% (non-resident) tax. What I can do. I have tried to talk to them but they said it is the way it should be done :( Any suggestions? Thank you.
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Re: [Income Taxes] 183 day Rule

Postby mukashi » 19 Mar 2013, 16:50

Hi,

I am trying to read through all the posts... but there's many of them. Also my friend who has similar work situation told me his company just found out about this rule, and started withholding his tax from salary (18%). This is my 3rd year working in Taiwan...and I am still confused.

Last year my company helped me to do taxes, and in the end I've paid 5% for the whole year, from the amount of money after deductions, which was very reasonable amount of money. There was no 183 days rule, no withholding, no 18% tax at all. Our accountant is planning to do same thing for me this year too.

Last year, the tax office said nothing about it... so... is it really that complicated? Or is the 183 rule applied only for the 1st year of work? I don't remember it being used on me before though :ponder:
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Re: [Income Taxes] 183 day Rule

Postby purple_hoodie » 11 Aug 2013, 10:50

Hi I'm currently on a student visa and have been pretty much regularly in Taiwan since Jan. 1, 2013; recently obtained work in TW so will switch to a work visa - just want to confirm that I will just have to pay the lower "normal" tax rate, and not the inflated 20 percent. I read the first couple posts which said this is true, ie, even if I switch visas, as long as I'm physically present in Taiwan for 183 days+ I get the regular rate, but they are old so I just want to make sure that is still in effect.

Thanks!
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Re: [Income Taxes] 183 day Rule

Postby tommy525 » 11 Aug 2013, 12:36

You pay tax the same as Taiwan residents/citizens if you are physically present in Taiwan for 183 days of that calendar year, whether you were working or not.
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Re: [Income Taxes] 183 day Rule

Postby purple_hoodie » 11 Aug 2013, 15:19

Thanks.
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