[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 Eiger Nathan » 16 Nov 2009, 17:11

To discuss the "correct" withholding tax rate with an HR company can be a hassle, and not lead anywhere, since c-y-a may just prevail from the company's side.

However, it is important to be aware of the principle: Withholding is only temporarily withholding, and has NOTHING to do with actual tax burden, calculated the following year for the past year, based on annual declaration in May.

Hence, even if withholding was (maybe) "too high", it will all get evened out next year - you will either get reimbursed by the Taiwan tax authorities, or you will have to pay a lower final amount than what you would have to have coughed up with a lower previous withholding rate.
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Re: [Income Taxes] 183 day Rule

Postby rocky raccoon » 17 Nov 2009, 10:04

Paul Muskinbak wrote:I'm in the same situation as a couple of others who have posted here.

I have been here for over 183 days this year. I changed jobs part way through the year. the HR girl at my new place is insistent that I have to pay 20% tax for the first 183 at the new company. She can't show me anything to confirm her rule, but has said if I can show her anything to disprove it she will change my rate to 6%.

Can anyone post a link or send me the relevent information?


To update my situation, HR finally reverted me back to the 6%. It's a decent sized company so it was more of a matter of griping to the right director that the underlings weren't taxing me at the correct amount.

You have to get them to actually *call* the local tax office. They will say oh this is the rule I checked, and won't actually admit that there's the chance they could be wrong unless they speak to an authority that will help sort them out.

If you can go and speak to the boss of the HR person and politely explain that there might be a problem with your taxes, the boss will pay attention. "Do you think you might be able to ask ________ to call the tax office and check what the rule is, because it seems like we're all a little confused?"

Then the HR person will have to follow the leader. Anyway that's what worked for me. Good luck.
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Re: [Income Taxes] 183 day Rule

Postby raja » 03 Mar 2010, 11:52

So I will be working until the end of May. Not the 183 days required . I have an APRC so if I just stay in Taiwan for another month or so bringing the total number of days up to 183 am I able to claim my tax back ?? Or am I missing some tricky rule or smthing that I'll get thrown at me when I go to fill in the tax rebate form ?

MAny thnx for your help.
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Re: [Income Taxes] 183 day Rule

Postby jlick » 03 Mar 2010, 12:43

raja wrote:if I just stay in Taiwan for another month or so bringing the total number of days up to 183 am I able to claim my tax back ??


Yes, you just need to be present in Taiwan for any reason and any visa status for at least 183 days to qualify for the resident tax rates. As long as the entry/exit records show you are here, you are fine.
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Re: [Income Taxes] 183 day Rule

Postby some_guy » 24 Mar 2010, 19:00

The way these 183 days are counted seems so silly to me.
I will have lived and worked in the country for the first 6 months of 2010 but because my work (essentially the government) sent me away on business for 2 weeks i will not total 183 days. So my only option to win back a whole months salary (that's what the 14% difference times 6 months works out to!) is to try to come back to Taiwan at the end of the year as a tourist and make up the "lost" weeks.

What kind of system allows someone who works for 5 months and bums around for 1 month to make more money than another person who works for 6 months minus a day with out taking vacation???

Is there any place to formally bring this to the attention of the gov't?
I realize this would lead to nothing in most countries, let alone here, but I think someone should speak up.
They should realize that if they give you a contract for 6 months and they themselves send you away for part of it, its not your fault.

ps- no offense intended to anyone who actually worked 5 months and is sticking around for one more :) !
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Re: [Income Taxes] 183 day Rule

Postby TwoTongues » 24 Mar 2010, 19:21

I have the same problem with 300 days. Apparently if you're here 183-300 days you use the number of days divided by 365 as the percentage of your income you will pay tax on. Over 300 days (10 months) and you pay 100%. Top tax rate is 40%.

So because I was here 308 days and wasn't aware of the law, I now have the distinct pleasure of paying 8% of my yearly income - approximately 1 month's total income - on taxes. If I had stayed out of the country for 1 extra week...

8 days costs me 1 month of work. Taiwan: this is your tax code. You fuckers.

So in the next couple of weeks, if you hear a cacophony of cursing wafting through the dust cloud over Taipei, my apologies in advance.
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Re: [Income Taxes] 183 day Rule

Postby twonavels » 24 Mar 2010, 20:14

I remember that there was a week or so before the cut-off date for paying taxes that the tax office actually stayed open until six. I guess I should phone and ask, but before I go through that hassle, is there anyone that knows where I can find the times online?
I would hate to miss a day off work to pay taxes.
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Re: [Income Taxes] 183 day Rule

Postby ekphrastic » 12 Jun 2010, 16:08

Hello all- This will be my first posting, so let me first thank you all for the wealth of knowledge I've found on these boards. Keep it up, its much more structured support than I've ever found here in Thailand.

In regards to the incredible 10-18% tax 183 day rule, I've been researching for when the best time of arrival would be. The site on tealit.com seems to disagree with the notion that one should arrive before July 2 (which is the single day that our taxes will be based upon. Ridiculous if you ask me, but I'm no bureaucrat- I studied fine art and punk rock in college.), because your taxes would continually fluctuate between 18% and 10% as long as you stay in Taiwan and sign contracts consecutively (this is because your 183 day status reflects the amount of time remaining on your ARC- see section labeled "Interpretation" on the attached tealit website.).

I've never been particularly good with taxation in almost any regard, but this one seems particularly confusing to understand in a straight-forward way. The bottom line on tealit.com says that (short of arriving on Jan. 1st) one should arrive after July 2nd in order to avoid a massive tangle of fluctuating taxation. Does everyone generally agree with this notion?

Here's the link again:
http://www.tealit.com/article_categorie ... ar-workers

Thanks,
EKP
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Re: [Income Taxes] 183 day Rule

Postby Nenita » 30 Sep 2010, 15:56

ekphrastic wrote:Hello all- This will be my first posting, so let me first thank you all for the wealth of knowledge I've found on these boards. Keep it up, its much more structured support than I've ever found here in Thailand.

In regards to the incredible 10-18% tax 183 day rule, I've been researching for when the best time of arrival would be. The site on tealit.com seems to disagree with the notion that one should arrive before July 2 (which is the single day that our taxes will be based upon. Ridiculous if you ask me, but I'm no bureaucrat- I studied fine art and punk rock in college.), because your taxes would continually fluctuate between 18% and 10% as long as you stay in Taiwan and sign contracts consecutively (this is because your 183 day status reflects the amount of time remaining on your ARC- see section labeled "Interpretation" on the attached tealit website.).

I've never been particularly good with taxation in almost any regard, but this one seems particularly confusing to understand in a straight-forward way. The bottom line on tealit.com says that (short of arriving on Jan. 1st) one should arrive after July 2nd in order to avoid a massive tangle of fluctuating taxation. Does everyone generally agree with this notion?

Here's the link again:
http://www.tealit.com/article_categorie ... ar-workers

Thanks,
EKP



Thanks a lot for the link, it really helps!
I arrived here on September and sign 1 yr contract with a company, so it means I have to pay 18% tax for 3 months and another 9 months of next year calendar I have to pay 6%. But I wonder if those 18% of 3 months I paid can be able to refund or not. If yes, I will get the difference between the regular tax rate back (12%),right?
What do I have to do if I want to refund these differences? Company told me I cannot get this refund, is this true?
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Re: [Income Taxes] 183 day Rule

Postby asiaeast » 17 Dec 2010, 08:53

Nenita wrote:
ekphrastic wrote:Hello all- This will be my first posting, so let me first thank you all for the wealth of knowledge I've found on these boards. Keep it up, its much more structured support than I've ever found here in Thailand.

In regards to the incredible 10-18% tax 183 day rule, I've been researching for when the best time of arrival would be. The site on tealit.com seems to disagree with the notion that one should arrive before July 2 (which is the single day that our taxes will be based upon. Ridiculous if you ask me, but I'm no bureaucrat- I studied fine art and punk rock in college.), because your taxes would continually fluctuate between 18% and 10% as long as you stay in Taiwan and sign contracts consecutively (this is because your 183 day status reflects the amount of time remaining on your ARC- see section labeled "Interpretation" on the attached tealit website.).

I've never been particularly good with taxation in almost any regard, but this one seems particularly confusing to understand in a straight-forward way. The bottom line on tealit.com says that (short of arriving on Jan. 1st) one should arrive after July 2nd in order to avoid a massive tangle of fluctuating taxation. Does everyone generally agree with this notion?

Here's the link again:
http://www.tealit.com/article_categorie ... ar-workers

Thanks,
EKP



Thanks a lot for the link, it really helps!
I arrived here on September and sign 1 yr contract with a company, so it means I have to pay 18% tax for 3 months and another 9 months of next year calendar I have to pay 6%. But I wonder if those 18% of 3 months I paid can be able to refund or not. If yes, I will get the difference between the regular tax rate back (12%),right?
What do I have to do if I want to refund these differences? Company told me I cannot get this refund, is this true?


Here in Taiwan, the 183 day rule applies to a given calendar year, just like it does in the US. So if you arrive in Sept., your 183 days starts Jan.1st. You won't see a tax break until the middle of the year. Many countries operate this same way.

My company charged me 18% in 2006 for 6 months and then 6% for the rest of the year. After that year, I paid only 6% all year round until 2009. Then they said the law has changed and I'd have to go back to paying 18% then 6% every year, half and half. Residence status in Taiwan wouldn't lower my taxes any more.

But for anyone at my company on a spouse visa/APRC, they only were required to pay 6% all year round. Now I've got an APRC and am being told the law has changed again and I'll still have to pay 18% then 6% every year, regardless of visa status.

I'm wondering if they mean the company policy has changed, not the law? Is this just an HR policy and not the law in Taiwan? I've run into plenty of people doing various jobs around Taiwan and they all have a different story on what their company requires for taxes each year.

Oddly enough, I'm married to a Taiwanese girl and we file taxes jointly, so I don't see why I shouldn't just pay to my company that same amount that she pays to her company. At the end of the year, we have to assess our taxes based on our marriage status, filing jointly. Why is my company telling me a different story?

I also have an open work permit. Can anyone tell me if that would change the status of what I should be paying for taxes? I know at the end of the year it will all balance out in the end. I'd just like to find the source of this information (is my school full of it?) and then find which company has the best policy, if there is no rule for taxes in Taiwan.
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