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From Digital Nomad to Real-Life Worker

ROC taxes, overseas payment of taxes, withholding rates, general tax liability issues, and other tax-related matters
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Re: From Digital Nomad to Real-Life Worker

Postby whowantsto » 27 Jun 2016, 09:43

It's pretty simple.

If you are in Taiwan for more than 90 days in a tax year, you need to declare all income. If it's more than 186 then you are entitled to deductions.
Digital nomad work is NOT overseas income since the work was done while in Taiwan, so you may have to back pay.

No issues with work permit at least if you were visa exempt.
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Re: From Digital Nomad to Real-Life Worker

Postby squall1 » 29 Jun 2016, 13:19

whowantsto wrote:It's pretty simple.

If you are in Taiwan for more than 90 days in a tax year, you need to declare all income. If it's more than 186 then you are entitled to deductions.
Digital nomad work is NOT overseas income since the work was done while in Taiwan, so you may have to back pay.

No issues with work permit at least if you were visa exempt.


Yup, that is correct...the same situation happened to me. Had spent over 90 days here in a year (not consecutively) working on projects for my foreign company, paid in foreign currency to my foreign bank. The next year I was assigned here permanently. When I filed taxes for the year after I had moved permanently, they asked why I didn't file taxes the year prior? This happens all the time to people like the OP and myself and as far as I know, its the only way the tax office catches people who are entering on 90 day visas and stay over 90 days in a year. Since most don't actually file, they never need to worry about it. It doesn't matter where your money comes from or that it never enters Taiwan in any official manner (banks, etc.). Stay here over 90 days and you must prove your income and potentially pay tax on it.
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Re: From Digital Nomad to Real-Life Worker

Postby taiwangirl » 30 Jun 2016, 11:44

if your money isn't deposit to Taiwan bank you don't really have to declare it
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Re: From Digital Nomad to Real-Life Worker

Postby taiwangirl » 30 Jun 2016, 11:50

if your money isn't deposit to Taiwan bank you don't really have to declare it
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Re: From Digital Nomad to Real-Life Worker

Postby whowantsto » 30 Jun 2016, 17:42

taiwangirl wrote:if your money isn't deposit to Taiwan bank you don't really have to declare it


You don't have to do anything, ever.

But if you 're talking about tax law (in pretty much any country), hiding income in offshore bank accounts is very much illegal.
You may not have to pay taxes on that income if you have already paid taxes somewhere else on it and if some kind of treaty applies, but that doesn't mean you can simply not declare it.

Where your money is deposited doesn't matter at all.
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Re: From Digital Nomad to Real-Life Worker

Postby derpydogs » 05 Jul 2016, 09:30

Did they send you an official notice or invoice yet outlining what you owe?
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Re: From Digital Nomad to Real-Life Worker

Postby squall1 » 06 Jul 2016, 13:42

derpydogs wrote:Did they send you an official notice or invoice yet outlining what you owe?


Not sure if this is directed at me, but I'll answer what happened in my case. When my tax prep person filed for the year I transferred to my company's local branch, they asked him why didn't I file a return the year prior. There was no notice, it was triggered by the filing of the return after I transferred to our Taiwan branch. At that point he couldn't purger himself (or whatever you want to call it), so I had to provide prior year proof of income (my home country tax return) and they figured what I owed Taiwan on a prorated basis after that. If you claim no income, you need to PROVE it. Otherwise they do some calculation as mentioned above.

To the other OP claiming you can "just not claim it" that would be a very bad idea in the situation we are talking about. Again, you need to prove you had zero income and how you were sustaining yourself here for over 90 days. If you can't sufficiently do that, they will factor something that likely won't be in your favor. Again, if you never end up working for a local company OR have plans to someday work for a local company, then yes, they would likely never know. So sure, take a chance, ymmv. They have threatened in the past to audit those who stay here over 90 days in a year who haven't filed a return, been in the news a couple of times and linked in other threads here.

In the end I made my company pay the unexpected tax bill since the only reason I was here was for project work on their behalf and the only reason I was being made to pay is because I had now transferred to their local office in Taiwan.
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Re: From Digital Nomad to Real-Life Worker

Postby derpydogs » 06 Jul 2016, 20:42

What I mean is it seems like OP hasn't gotten any official paperwork saying that he owes the tax office money. Certainly they would send him something which would start the 3 month deferment count
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Re: From Digital Nomad to Real-Life Worker

Postby shrimp_crackers3 » 11 Jul 2016, 14:46

derpydogs wrote:What I mean is it seems like OP hasn't gotten any official paperwork saying that he owes the tax office money. Certainly they would send him something which would start the 3 month deferment count


Nope not yet. I also feel like if I talk to someone else at the tax office they'll give me a completely different answer.
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