Limits of the 183-day rule

[jaykay1620]

I've read about and understand the concept of this rule, but I've still got a couple specific questions about trying to figure the limits of the rule:

1) Let's say I enter Taiwan on day 182 (July 1st?). Do I still get the resident rate for the rest of this year and next?

2) Let's say that after I entered Taiwan on day 182, I worked for some period of time less then a year, then left Taiwan. Since I in no way would have worked for a whole year, would I still be on the hook for the 20% somehow?

3) Let's say I enter with a tourist visa before day 183, but go on a visa run after day 183 to re-enter on an ARC. Does my visa run "restart the clock" and force me into the 20%?

[Brendon]

I'm no expert, but here's my understanding:

1) Let's say I enter Taiwan on day 182 (July 1st?). Do I still get the resident rate for the rest of this year and next?

Your salary will be withheld at 20%, most of which you can claim back when you file your tax returns the following year, if you were in Taiwan for 183 or more days. You'll get the refund in maybe July or August (of the following year).

2) Let's say that after I entered Taiwan on day 182, I worked for some period of time less then a year, then left Taiwan. Since I in no way would have worked for a whole year, would I still be on the hook for the 20% somehow?

If you were in Taiwan for less than 183 days, you pay 20%.

3) Let's say I enter with a tourist visa before day 183, but go on a visa run after day 183 to re-enter on an ARC. Does my visa run "restart the clock" and force me into the 20%?

No. All that matters is whether you were here for more than 183 days in the year. You can break it up as you like.

[jaykay1620]

Your salary will be withheld at 20%, most of which you can claim back when you file your tax returns the following year, if you were in Taiwan for 183 or more days. You'll get the refund in maybe July or August (of the following year).

I thought this is what happens if you enter Taiwan before the 183-day mark (which is in late June/early July or whatever).

Maybe there's something really basic about this that I just don't understand. I thought if you enter in, say, March, you get the 5% withholding right off the bat, but if you enter in August you don't. Can you apply the same logic and say, if you enter on day 182, you get 5% withholding, but if you enter on day 184 you get 20% withholding?

This may be more complicated that I'm currently perceiving it.

[Brendon]

I think it's less complicated than you think. What matters is how many days you were in the country, not when you came or went. If it was less than 183, you're not entitled to a refund. If it's 183 or more, you are.

Either way, your salary is withheld at 20%.

[CraigTPE]

3) Let's say I enter with a tourist visa before day 183, but go on a visa run after day 183 to re-enter on an ARC. Does my visa run "restart the clock" and force me into the 20%?

No. All that matters is whether you were here for more than 183 days in the year. You can break it up as you like.

Are you sure? I used a tourist visa when I first came here and was told that on a tourist visa the clock reset each time I left the country. However, if I was here on a tourist visa, and had it converted to a resident visa here, then the time was included since my last entry on that tourist visa.

[wix]

The tax office calculates the number of days one has been in Taiwan from the entry and exit stamps on your passport. The exact kind of visa you are using is not taken into consideration.

[CraigTPE]

The tax office calculates the number of days one has been in Taiwan from the entry and exit stamps on your passport. The exact kind of visa you are using is not taken into consideration.

Maybe what they were talking about was time credited toward the 7 years needed before applying for permanent residence. They said the year I was in and out on tourist visas wouldn't count. I must have incorrectly assumed that applied for taxes too.