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Are taxes for foreign workers too high?

ROC taxes, overseas payment of taxes, withholding rates, general tax liability issues, and other tax-related matters
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Postby j99l88e77 » 15 Feb 2007, 23:45

jlick wrote:
j99l88e77 wrote:The tax rate for 60,000 NT in Korea is less than 1%. It's 13% in Taiwan. Way too much.

The effective tax rate for a worker earning TWD60000 per month using only standard exemptions and deductions would be 6.3%. If claiming rental deduction, parent over 70 years old, other dependents, etc. then the effective tax rate would be lower. By direct comparison, the effective tax rate on the same amount of income in Korea using only standard deductions and exemptions according to their automated calculation service is 1.2%.(I get a little under 1%)

TWD60000 is an entry level wage for an English teacher though. An experienced teacher working full time can often make TWD100000 a month. In that case, using only standard deductions and exemptions, the effective tax rate in Taiwan would be 8.9%. The effective tax rate in Korea would be 5.6% (I get a little over 4.2%)

At TWD150000/month income the effective rate is 12.9% in Taiwan and 9.42% in Korea. (I get 7.85%)

One interesting difference is that Korea taxes worldwide income while Taiwan only taxes local income. That may make a difference for some taxpayers.

Yeah, I was thinking that there must be some deductibles to consider to lower the amount payable in Taiwan. I'm not sure about other tax payers, but for foreginers it seems there is an industry standard here to tax taking into account all of the deductibles.

I wonder why my figures are different than yours? Maybe it's the currency converter I'm using:

In Korea, there's more of a chance though that your employer is not forwarding what he deducts to the tax office, but that's not your problem. It's the owner's responsibility and it's also his/her responsiblity to provide you with the proper tax certificates so you can fill them out and submit them.
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