1Q: What are the regulations with regards paying taxes?
◆Every foreign national is required to pay taxes in Taiwan.
◆Taxable income from your employer will differ according to your status as a resident or nonresident.
◆For resident : If you have resided in Taiwan in the aggregate of 180 days or more within a taxable year, you will need to file for income tax in accordance with the applicable tax rate between 5% to 40%. If your employer is a withholding agent under the income tax law, you may request a reduction on 5% from the total full-month income payment or the deduction in accordance with the appropriate income tax withholding law.
◆For non-resident : If your residency in Taiwan in the aggregate within a taxable year does not exceed 183 days, and your monthly income is below 1.5 times the minimum wage approved by the Executive Yuan, 6% of the total amount paid to you will be withheld for income tax purposes. If your monthly income exceeds 1.5 times the minimum wage approved by the Executive Yuan,18% of the total amount paid to you will be withheld for income tax purposes. There is no requirements for annual tax reporting.
2Q: How do I get tax refund?
◆If tax for the previous year is being withheld by the company, the excess of that tax withheld will be refunded in the current year.
◆The earliest period for tax refund is from September. It will be released by the tax bureau in a form of check.
◆The worker is usually asked to sign a letter authorizing the employer/broker to get the check refund from the tax bureau.
◆When receiving the tax refund from the employer, please check that the amount is accurate before signing the claim receipt.