How does the tax system in Taiwan work?
The tax year in Taiwan runs from January to December. For the first six months (183 days) that you are in Taiwan, you will need to pay 20% tax on your earnings. This period of time is determined by the entry/exit stamps in your passport, and not your employment contract. You then file for tax returns before May 31st of the following year. However, if you arrive after July 31st, you will not be in this bracket. You will therefore still need to pay the 20% tax, but will not be able to file for tax return on it. If you arrive before the July 31st cutoff date and are present in Taiwan for longer than 183 days in that tax year (for example, if your arrival date was in March), then you can claim a partial refund on the taxes paid in the following year. Be careful as any time spent out of the country (visa runs, holidays, etc.) will not count toward this 183-day period.
