Click here to go to our new forums at http://tw.forumosa.com
If you are a Forumosan Regular, when you log in for the FIRST TIME, you must RESET your password by using the Password Recovery system.

Usernames on the new forums must not contain any SPACES and must end with LETTER or a NUMBER; if yours does, you will be prompted to change your Username
Contact us at admin(at)forumosa(dot)com or @forumosa on Twitter or on our Facebook Page if you have any questions or problems logging back in

Are taxes for foreign workers too high?

ROC taxes, overseas payment of taxes, withholding rates, general tax liability issues, and other tax-related matters
Forum rules
While the moderators are happy to help point people in the right direction for legal assistance and to attempt to keep these forums civil and tidy, please bear in mind that an Internet forum is not the place for providing or receiving legal advice or for the creation of any attorney-client privileges or obligations. Also keep in mind that Forumosa and the moderators cannot conduct comprehensive reviews of all laws or legal concepts referenced or discussed within these forums – laws and regulations are updated and amended, interpretations do change, and sometimes the legal landscape can change very fast. Forumosa provides these legal forums for general informational purposes only. By using these legal forums, you agree that the information does not constitute legal or other professional advice and no attorney-client or other relationship is created between you and any other posters on these forums. DO NOT CONSIDER THE FORUMS TO BE A SUBSTITUTE FOR OBTAINING LEGAL ADVICE FROM A QUALIFIED LICENSED ATTORNEY.

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: http://www.xe.com/ucc/convert.cgi

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.
User avatar
j99l88e77
I'm posting like Shakespeare (1564~1616)
I'm posting like Shakespeare (1564~1616)
 
Posts: 1593
{ AUTHOR_TOPIC }
Joined: 29 Aug 2004, 15:18
Location: South Korea



FRIENDLY REMINDER
   Please remember that Forumosa is not responsible for the content that appears on the other side of links that Forumosans post on our forums. As a discussion website, we encourage open and frank debate. We have learned that the most effective way to address questionable claims or accusations on Forumosa is by engaging in a sincere and constructive conversation. To make this website work, we must all feel safe in expressing our opinions, this also means backing up any claims with hard facts, including links to other websites.
   Please also remember that one should not believe everything one reads on the Internet, particularly from websites whose content cannot be easily verified or substantiated. Use your common sense and do not hesitate to ask for proof.
Previous




Return to Taxes



Who is online

Forumosans browsing this forum: No Forumosans and 2 guests