I was not here for 183 days in 2006, but will be here for 183 days in 2007.
1) Starting in 2007, will any or my 20% withholdings be paid to the government, or will my boss keep it all in her pocket?
2) When will she refund it to me? She will owe me a fat chunk of change on the 183rd day of 2007, regardless if she gives me 14% or 20% back. Do bosses actually hand over the cash on the 183rd day, or do they try to hold on to it for other reasons (maybe as collateral to ensure teachers finish their 1 year contract)?
3) Am I supposed to treat this involuntary 20% withholding as an interest free loan from me to my boss, or am I entitled to a reasonable rate of return on my money?
Believe me, I wish I could ask my boss these questions in person. But her advice was for me to go to the tax bureau myself, get some clarification, and then teach her. I didn't know that Taiwan expected it's employees to personally research the tax laws in order to educate management. But I guess I learn something new about the island every day.