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Obtaining the RESIDENCY WITHHOLDING RATE in Taiwan

ROC taxes, overseas payment of taxes, withholding rates, general tax liability issues, and other tax-related matters
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Obtaining the RESIDENCY WITHHOLDING RATE in Taiwan

Postby Hartzell » 07 Apr 2011, 20:24

Hello:

I have an APRC and frequently do some part-time jobs or short-term jobs at various organizations in Taiwan, where I receive salary/wages.

Some weeks ago one of these organizations asked me to sign a Chinese language form which authorizes them to deduct taxes from my salary/wages at the RESIDENCY RATE due to my stated intention to fullfill the RESIDENCY REQUIREMENT of being in Taiwan 183 days or more this year.

I have obtained a Microsoft WORD version (.doc) of this document and revised it to be suitable for any company/organization. Obviously, you can do further modifications yourself, or with the help of your Taiwanese associate, friend, or accounting lady.

I have posted the one-page form online here for easy downloading --
http://www.taiwanbasic.com/tax/tax-statement.doc

I think this form could be quite helpful for those foreigners who currently have an ARC or APRC, but are seeing their taxes deducted at a NON-RESIDENCY RATE in the first half of the year. With this form, it should be possible to convince your employer to deduct your taxes at the RESIDENCY RATE.

OK, good luck!! It has worked for me.

= = = = = = ROUGH TRANSLATION OF THE CONTENT OF THE FORM = = = = = =


STATEMENT

I ________________ working in COMPANY/ORGANIZATION NAME in the position of _______ , provide a statement as follows:

1. In the current year, I am residing in the Taiwan area for 183 days or more, hence my salary/wages should be taxed at the same rate as for Taiwan citizens. If there is any change in my statement of these residency conditions, I will automatically notify my superior in the COMPANY/ORGANIZATION NAME as well as the Head of the Accounting Dept. of all relevant details.

2. If my ARC expires at any time during this year, I will automatically and promptly provide the Accounting Dept. of the COMPANY/ORGANIZATION NAME with a photocopy of my new ARC card.

Signed and Chopped

DATE
Richard W. Hartzell
contact me by email at rwh.midway@gmail.com
Neihu District, Taipei (114)

This post was recommended by 2 Forumosans: headhonchoII (06 Mar 2014, 08:29), maoman (13 Apr 2011, 16:53)
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Re: Obtaining the RESIDENCY WITHHOLDING RATE in Taiwan

Postby Abacus » 05 Mar 2014, 23:49

I don't understand the relevance of this document. It politely says that the foreign employee is staying in Taiwan for 183 days but what prevents the employee from just taking off and sticking the company with a large unpaid tax bill. It is my understanding that the business is liable for those unpaid taxes regardless of this document.
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Re: Obtaining the RESIDENCY WITHHOLDING RATE in Taiwan

Postby achdizzy1099 » 06 Mar 2014, 00:40

This is definitely going to be useful for APRC teachers I believe.

What's important is that this is a government supplied document. I have many APRC friends who have been working fo the same school for years, but are now being charged the 18% taxes like they're a backpacking transient. They're more offended than anything else.

This document obviously doesn't take the place of the missing money if one were to suddenly bolt the island, but it certainly creates an avenue for schools to not feel obligated to tax their trusted, long term teachers.

It's a step forward for professionalism. I like it. Thanks,

T
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Re: Obtaining the RESIDENCY WITHHOLDING RATE in Taiwan

Postby Abacus » 06 Mar 2014, 07:12

All I see is a document that allows a school to voluntarily opt out of taxing a teacher at 18% while still remaining on the hook if they leave abruptly in the first 6 months. If a school feels okay with that risk then it's nice but there's nothing that should compel a school to agree to this although a school should be able to reasonably conclude that an APRC holder isn't going to just up and leave.
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Re: Obtaining the RESIDENCY WITHHOLDING RATE in Taiwan

Postby puljaljuyan » 06 Mar 2014, 18:11

Do JFRV holders have to pay the 18% rate usually?
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Re: Obtaining the RESIDENCY WITHHOLDING RATE in Taiwan

Postby funkymonkey » 08 Mar 2014, 13:58

puljaljuyan wrote:Do JFRV holders have to pay the 18% rate usually?

Yes.
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Re: Obtaining the RESIDENCY WITHHOLDING RATE in Taiwan

Postby headhonchoII » 08 Mar 2014, 14:10

Yes, which makes a mockery of Taiwan's supposed flexibility and improvements for long term residents.
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