JFRV and editing work...

[creztor]

I've got a JFRV and someone from a university wants me to help him with some editing work. Of course he needs my ARC to claim me as an expense for his research grant. However, can I do this kind of work on a JFRV legally? I realize the JFRV gives me open work rights, but how would I go about declaring the tax on this kind of freelance type work? I see others mention a "rentou" or just using a go between to get the money, but just seeing if it is even legal for me to do this in the first place. Thanks in advance.

[cranky laowai]

It's legal and no big deal. The university should provide you with an official income statement to give to the tax people at filing time.

But don't be surprised if they take out 17-20 percent for taxes, most of which you should eventually get back. AFAIK, that would be the only real advantage of using your wife as a front for the payment.

[creztor]

cranky laowai, thank you very much for the prompt reply. I'll ask about the tax statement in advance to double check. Thanks again for the help.

[Dragonbones]

If you tell them you've been in Taiwan a long time and that they should not withhold more than 6%, they will usually comply, but it's up to their accountant, generally; some will book it without withholding, and some will put it in an honorarium category that is not taxable income up to a certain amount. Have a photocopy of your passport name page and ARC ready (or a scan you can send by email) for such clients. Some will also want a copy of the name page of your bank passbook if they are paying by ATM transfer. Just comply with whatever their accountant requires, including signing a receipt in advance of actually receiving the money (this is common here at universities and research institutes).

[creztor]

Dragonbones, thanks a lot for the reply. I was just mainly worried about the "tax". You guys helped clear it up. I appreciate it a lot.

[ironlady]

Make sure they report editing fees as "gao fei" -- there is a much larger tax-free allowance for this category of income.

[creztor]

ironlady, by "they" do you mean the university or whoever there that will issue the income statement that I take to the tax office?

[ironlady]

Yep. I forget the number for the category -- 4A? can't remember -- but there's a huge excluded amount before that category of income is taxed.

[kitkat]

I think it's category 9B.

[creztor]

Thanks guys. I appreciate it immensely.