shrimp_crackers3 wrote:So for anyone that's in my situation it's a good idea not to listen to the guys in the tax office and make sure you have an accountant help you with this? Why? They denied that the under $1 million rule for foreign income exists, ignored any deductions, and treated it as code 50 which means salary (what about being self-employed), and hit me with a huge tax bill. They said I had an option for a 3 month deferral to which I said "OK" and left. They didn't offer to give me any official notice/letter saying what I owned and when I'd have to pay it. So... lol.
So, they will come back at you next time you are at the tax office? Or will they send a letter out after 3 months?
A friend sent me a message 3 years ago about his experience just inquiring at the tax office.
The woman at the desk told him it would cost around 400,000NT to fix his taxes - for 7 years (the max period the tax office count) undeclared.
She looked at a chart and said if there is no proof of earnings they assume the standard rate of salary for a foreigner his age in Taiwan, which would be 83K/month! Even if he has no job in Taiwan.
She said if he could show them he had earned/received around 33k/month the total bill would be around 50k.
She also said he would not have to pay anything unless he wanted the certificate (to allow him to get an ARC). There would be no installments option too.
Also, a friend in Taichung had some unpaid taxes (he'd had an ARC and a few years with no ARC) and went to the tax office with no proof of earnings (he had applied for a new ARC at the time). He told them he had been a musician trying to make a living. They just gave him the certificate.
I wonder if Taipei is stricter than other tax offices?
cake wrote:How did they know about the interest from your bank?
They have access to people's bank accounts?
The banks withhold tax (10% for residents, 20% for non-residents, though sometimes they assume the wrong status for you) on interest payments, just like employers are supposed to withhold tax on salary. Both banks and employers are supposed to report the income (interest or salary) and the tax withheld, so the tax people already know when you file.
Oh yeah, I forgot about that.
The poster who said about being a tourist. If you are here for over 90 days, you are classed as a 'resident'. But of course have no legal rights as a resident and can never apply for residency in that scenario.