How much do we really get back?

ROC taxes, overseas payment of taxes, withholding rates, general tax liability issues, and other tax-related matters
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How much do we really get back?

Postby XinBiDe » 09 Feb 2009, 22:52

So we get taxed 20% for half the year. Of that portion, how much money do we get back in our returns?
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Re: How much do we really get back?

Postby Northcoast Surfer » 09 Feb 2009, 23:19

XinBiDe wrote:So we get taxed 20% for half the year. Of that portion, how much money do we get back in our returns?

Depends on how much money you made. There are two main tax groups. People who have to pay 6% and people who have to pay 13% . Which one you fall into will depend on how much money you made for 2008. It's just like in America when you fill out your standard form 1040 and after accounting for everything you consult the tax tables in the booklet to see what you owe or what you overpaid. You can also download and use a nifty tax computer program to calculate everything for you which is provided by the tax authority which makes it really simple. So, if you fall into the 6% tax bracket, then you'll get 14% of the 20% refunded.
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Re: How much do we really get back?

Postby XinBiDe » 10 Feb 2009, 00:18

That's crap.
14% of 20%???? Am I reading that right?

Do you mean, I get 14% of all my wage back, or like, a tiny piece of what I was taxed?
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Re: How much do we really get back?

Postby Buttercup » 10 Feb 2009, 00:46

You have a problem with 6% taxation? Why? It'd be nicer not to have it witheld in the first place, but 6% isn't a hardship.
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Re: How much do we really get back?

Postby tommy525 » 10 Feb 2009, 00:57

simply put at the end of the year they figure out how much taxes are due from your income, minus the exemptions and all that and you get back what you have over paid.

Dont forget if you dont stay past 183 days (and yes they count them carefully) you will lose all your exemptions as well as pay 20pct . So your overall taxes are much higher.

Typically in the US for example if you make say 45,000 usd a year, you will end up with about 25pct actual taxes after all exemptions, etc for a single person. So six pct in Taiwan? pretty cool I would say
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Re: How much do we really get back?

Postby XinBiDe » 10 Feb 2009, 01:30

OK I think i understand

I thought you meant 14% of 20% meaning:

14/100 X 20/100 = 2.8% total back or whatever it is
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Re: How much do we really get back?

Postby Northcoast Surfer » 11 Feb 2009, 00:16

XinBiDe wrote:OK I think i understand
I thought you meant 14% of 20% meaning:
14/100 X 20/100 = 2.8% total back or whatever it is
No, no, no. Ok...let's go to Fantasy Island for a moment.

Let's say that you begin working on January 1st 2009. You will be withheld at 20% tax for the first 183 days. That takes you to July 2nd or 3rd depending on whether or not it's a leap year for February. ok?

Then for the remaining days of the year, let's say July 4th through December 31st you'll be withheld at 10%.

Now let's do some math.

From January 1st through July 3rd you earn $500,000 NTD gross. You get to keep $400,000 NTD and $100,00 NTD gets withheld for your taxes. (20% withholding)

From January 4th through December 31st you earn $500,000 NTD gross. You get to keep $450,000 NTD and $50,000 NTD gets withheld for your taxes. (10% withholding)

So, when it comes time to do your taxes around April/May of 2010 this is how it would look.*****

You had a total income of $1,000,000 NTD.
You had a total $150,000 NTD withheld from you for your taxes.
Your meager income of $1,000,000 NTD keeps you in the 6% taxable income bracket. So, 6% of $1,000,000 is $60,000. However, you had a total withholding of $150,000, so the difference between the two is your refund. You will be refunded $90,000 NTD and the amount of tax the government will keep is $60,000 NTD.

HOWEVER. If you were to work from January 1st through June 30th and leave Taiwan on July 1st (before the 183 day mark), you will get none of the 20% withheld back! So, basically you would forfeit $100,000 NTD and there's not a damned thing you could do about it! Be aware of the 183 day mark!

ADDITIONALLY. If you arrive in Taiwan on July 4th and start working, you'll be withheld at 20% and you won't get one NTD refunded because you won't have been in Taiwan for 183 days or more in the tax year in question. This happened to me when I first came to Taiwan. I arrived on August 5 and started working and had the mandatory 20% withheld for taxes and I got exactly 0% of the $90,000 NTD withheld! :doh:

GRATUITOUSLY. If you arrive in Taiwan on June 21st and you work until December 31st, you beat the 183 rule and get your tax refund minus what taxes you actually owe right? Wrong. Don't you remember? It's because you decided to take that 14 day vacation to your home country to celebrate Christmas which drops you under the 183 day rule for the tax year in question. June 21st ~ December 31st = 195 days - 14 days vacation = 181 days within the tax year = no refund! :fume: I've seen it happen!

****** Remember, this is just fantasy. I know we didn't do the standard deductions, or itemized deductions, or medical deductions, etc. This is just for simplicity sake.
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Re: How much do we really get back?

Postby tommy525 » 11 Feb 2009, 02:13

whew... I was about to mention and you did, that you also lose all those deductions and exemptions , etc as well as pay 20pct of your total earnings flat !

big losses if you stayed one day too short. I guess they figure if you are on the island you is spending yo money on the rock and helping the Economy bud, OR ELSE.
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Re: How much do we really get back?

Postby housecat » 11 Feb 2009, 07:18

tommy525 wrote:big losses if you stayed one day too short.


Happened to me the first year I was there. The day before I was to leave, someone was kind enough to warn me that if I got on the plane the next day, I'd lose my taxes. If I could delay the flight by one day, I'd get it all back. I was soooo ticked off that no one had bothered to mention this before I paid for the ticket. Trying to change flight the day before I was to leave was going to cost, though not as much as I lost, but my friend at home had already taken the day off work to drive the two and a half hours one way to the air port to pick me up. I just had to eat it.
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Re: How much do we really get back?

Postby tommy525 » 11 Feb 2009, 07:27

housecat wrote:
tommy525 wrote:big losses if you stayed one day too short.


Happened to me the first year I was there. The day before I was to leave, someone was kind enough to warn me that if I got on the plane the next day, I'd lose my taxes. If I could delay the flight by one day, I'd get it all back. I was soooo ticked off that no one had bothered to mention this before I paid for the ticket. Trying to change flight the day before I was to leave was going to cost, though not as much as I lost, but my friend at home had already taken the day off work to drive the two and a half hours one way to the air port to pick me up. I just had to eat it.


Major bummer there. Hope it tasted good (you said you had to eat it).

Well it helped the govt balance of payments anyhow.

Hear the latest here in CAlifornia? The state is broke so they will give you an I.O.U. if they owe you a refund on your Calif state taxes? !
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