FAQ

Tax

For this project, do we have to file the tax here in America? Or only in Taiwan?

The alien taxpayer’s native country’s income tax cannot be credited to the ROC income tax, as the ROC Income Tax Act stipulates. Whether the ROC income tax can be credited to the native country’s income tax or not hinges on the income tax law of his or her native country. The alien taxpayer should inquire with tax authorities in his or her native country to make this determination. For the alien taxpayer who is allowed to claim a tax credit in his or her native country, he or she may apply for a tax statement with the head office of Taipei National Tax Administration, the head office of Kaohsiung National Tax Administration, or any branch, office, service station of National Tax Administration of Northern Taiwan, Central Taiwan and Southern Taiwan Province, Ministry of Finance.

Our school is taking out 18% tax. Our understanding is that we should only be taxed 5%. I asked if we were going to get reimbursed after 183 days but they are telling us No. Is there any way the MOE or the assistant can send an e-mail stating that we should only be taxed 5%?(Jessica) Will we receive the 5% monthly tax withholding back as a refund when we file our taxes in Taiwan? (Ella)

Withholding tax rate for a foreigner is based on the tax character, resident or non-resident of the ROC, he or she acquired during each taxable year (from January to December of each year). By reference to the Income Tax Act of the ROC, the only criteria for deciding the tax character of a foreign taxpayer is the 183-day rule, which means a person who physically presented 183 days and more in this country in a taxable year will be classified as a character of a tax resident and shall be withhold as such (5%) from the day of acquisition. On the other hand, a person who hasn’t spent more than 183 days in a year is considered a non-resident and his withholding rate will be fixed at 18%.  However, any over withheld can be claimed back by filing Individual income tax return with the national tax administration through a refund procedure.

According to the table of progressive tax rates for residents (http://www.ntat.gov.tw/county/ntat_ch/ntat_en/en9-02-3-14.jsp ) I am confused concerning how much I will be taxed. It says that I will need to pay 12% because I make more than 500,000 a year. Where does it say that we are only taxed 5% if we stay more than 183 days?

The procedure for filing an income tax relates to the way your school file tax. Please contact with the nearest National Tax Administration branch or Revenue Service office for more detailed information.

Will the salaries from extra duty assignments be taxed? If so, are any extra duty assignment salaries exempt from the tax?

According to the Income Tax, all the income should be taxed. If you have further questions, the following numbers is available to reply, 886-2-23113899 Ext. 1130 (Foreign Taxpayers’ Section of Taipei National Tax Administration, Ministry of Finance).

I am on a tight budget due to financial obligations in America, and I came to work here this school year not expecting to pay any taxes. What is being done this year to help anyone who is negatively impacted by this tax? Will you do a retroactive salary increase of five percent this year?

According to Articles 4, 17 and 126 of the Income Tax Act amended and promulgated on January 19, 2011, the emendation starts a policy that the military and the teachers and staff in the kindergarten, elementary and Junior high school should pay the income taxes since 2012. The increasing of the salary is still under discussion.

Are foreign teachers required to pay a Taiwan income tax?

Yes. Starting from 2012, all K-9 teachers in Taiwan have to pay income tax, including foreign teachers. By reference to the Income Tax Act of the ROC, the only criteria for deciding the tax character of a foreign taxpayer is the 183-day rule (from January to December of each year), which means a person who physically presented 183 days and more in this country in a taxable year will be classified as a character of a tax resident and shall be withhold as such (5%) from the day of acquisition. On the other hand, a person who hasn’t spent more than 183 days in a year is considered a non-resident and his withholding rate will be fixed at 18%. The host school in Taiwan will deduct from the salary every month. Any over withheld can be claimed back by filing Individual income tax return with the national tax administration through a refund procedure. However, the actual rates/amount will be calculated by and depended on the guidelines of Taiwan’s IRS.

Possible salary increase to offset paying income tax?

MOE is still working on it. I haven’t receive any information.

For this project, do we have to file the tax here in America or only in Taiwan?

The alien taxpayer’s native country’s income tax cannot be credited to the ROC income tax, as the R.O.C Income Tax Act stipulates. Whether the ROC income tax can be credited to the native country’s income tax or not hinges on the income tax law of his or her native country. The alien taxpayer should inquire with tax authorities in his or her native country to make this determination. For the alien taxpayer who is allowed to claim a tax credit in his or her native country, he or she may apply for a tax statement with the head office of Taipei National Tax Administration, the head office of Kaohsiung National Tax Administration, or any branch, office, service station of National Tax Administration of Northern Taiwan, Central Taiwan and Southern Taiwan Province, Ministry of Finance.

Our school is taking out 18% tax. Our understanding is that we should only be taxed 5%. I asked if we were going to get reimbursed after 183 days but they are telling us no. Is there any way the M.O.E or you can send me an e-mail stating that we should only be taxed 5%?(Jessica) Will we receive the 5% monthly tax withholding back as a refund when we file our taxes in Taiwan?

Withholding tax rate for a foreigner is based on the tax character, resident or non-resident of the R.O.C, he or she acquired during each taxable year (from January to December of each year).  By reference to the Income Tax Act of the R.O.C, the only criteria for deciding the tax character of a foreign taxpayer is the 183-day rule, which means a person who physically presented 183 days and more in this country in a taxable year will be classified as a character of a tax resident and shall be withhold as such (5%) from the day of acquisition.  On the other hand, a person who hasn’t spent more than 183 days in a year is considered a non-resident and his withholding rate will be fixed at 18%.  However, any over withheld can be claimed back by filing Individual income tax return with the national tax administration through a refund procedure.

Will the salaries from extra duty assignments be taxed? If so, are any extra duty assignment salaries exempt from the tax?

According to the Income Tax, all the income should be taxed. If you have father questions, the following numbers is available to reply,886-2-23113899 Ext. 1130 (Foreign Taxpayers’ Section of Taipei National Tax Administration, Ministry of Finance). We still ask for the list.

I am on a tight budget due to financial obligations in America, and I came to work here this school year not expecting to pay any taxes. What is being done this year to help anyone who is negatively impacted by this tax? Will you do a retroactive salary increase of five percent this year?

Articles 4, 17 and 126 of the Income Tax Act amended and promulgated on January 19, 2011. The emendation starts a policy that the military and the teachers and staff in the kindergarten, elementary and Junior high school should pay the income taxes since 2012. The increasing of the salary, MOE is still working on it.

Do we have to file an income tax for 2011 showing we owe 0 we were exempt from paying tax in 2011?

No, you don’t have to file the income tax for 2011.

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