Taxes for English Teachers in Taiwan

Since Taiwan is not technically recognized throughout the world as an independent country, your home country may or may not have a tax treaty.

The Taipei National Tax Administration, Ministry of Finance office has a pretty good website that details everything you have to do. www.ntat.gov.tw

• Tax year starts Jan 1 and ends Dec 31
• Computation of residence is the total accumulated days spend IN Taiwan
• If you live in Taiwan longer than 183 days in a taxable year, you are considered a resident and individual income tax shall be declared and assessed by a progressive rate. Taxes are withheld at a 20% rate until a teacher has been in Taiwan for 183 days in a calendar year. 183 days is roughly 6 months. After accumulating 183 days, the withholding tax rate drops to 10%. According to the Taiwanese labour code, your employer, if employing a foreigner, must provide a receipt of your tax deduction while deducting tax from your monthly salary.
• If a teacher is in Taiwan for less than 183 days then no tax refund is given for that year. The tax rate for teachers living in Taiwan for more than 183 days is 10%, and a tax refund is given annually. After your tax rebate, you will have paid roughly 6% on your earnings after the initial 183 days. This means you should try to get to Taiwan BEFORE July.

The tax forms are simple. You get them at the end of the year financial year, complete them, sumbit them to the regional tax office and they give you a return. Simple. Remember not to declare any under-the-table earnings.