Abacus wrote:Unfortunately this is the way it has to be. Stupid 18%.
yyy wrote:Abacus wrote:Unfortunately this is the way it has to be. Stupid 18%.
It's not that they need to deduct 18%, just that you can't force them not to deduct it, even if your contract with them goes for more than 183 days in the current year. They can use the resident withholding rate if they want to.
tommy525 wrote:In the USA, your income received in 2016 is income for 2016, even if it was a bonus for work in December 2015, but received in 2016, it counts as 2016 income.
What is dumb in Taiwan is this 18pct tax withheld until 183 days in the calendar year has passed. It is understandable only if substantial numbers of people skipped the country before 183 days, that is an IF.
Also , it would be fairer if , once you go past the 183 days on the rock, whatever has been paid in tax withheld should be immediately counted towards dollars withheld.
18 pct held until 183 days reached, then 5 to 6pct (in many cases) until the end of the year. What is excess is refunded when you do your taxes for the prior year.
18 pct held until 183 days reached. Then zero pct deducted until what is excess is absorbed, then resumed at 5 to 6 pct (as the case may be) till the year ends. You will get less of a refund when you do your taxes but you got your money back faster. And in my view, more equitably.
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