How does the tax system work in Taiwan?
All teachers who stay in the country for more than 183 in a calendar year are entitled to a tax rebate. The actual amount of the rebate depends upon which month teachers arrive. Teachers arriving between the start of December and the end of June will pay 20% tax for the first 6 months (183 days) and then this will drop down to 10%. Teachers will be entitled to a tax rebate on all tax paid. Teachers arriving between the start of July and the end of November will pay 20% until the end of the following June and then this will drop to 10%. Teachers will be entitled to a tax rebate on all tax paid from January (December’s salary since salaries are paid on the 10th of the following month) and the end of the contract period. The rebate can sometimes be as much as ?,000 by the end of the contract, thus many teachers look on it a kind of compulsory savings plan.
