The tax man cometh

Who pays taxes?

Everyone who works in Taiwan for more than 90 days during the calendar year is required to pay taxes. Even if you work for a foreign company and your salary is paid to you abroad, you are taxed on what you made during those 90 days. The National Tax Administration says they use your taxes to ensure your quality of life while you are resident in Taiwan.

If you can prove that you were a student, or that money was remitted to you from abroad, then you don't have to pay taxes.

If you're one of the lucky people who won the lottery or the receipt draw, your winnings will be taxed at 20 percent.

When do I pay taxes?

If you stayed in Taiwan for 90 to 183 days during 1999, you will have to pay taxes before you leave Taiwan.

If you stayed in Taiwan for more than 183 days during 1999, you're considered a resident and you have to file a tax return by March 31, 2000. If you can't file by this date, you can apply for an extension until the end of April, but paperwork for your extension has to be in before March 31, 2000. And they'll charge you interest during the extension period.

Staff at the National Tax Administration recommend that you don't wait until the last minute, as most people do. Queue are long at the end of March, patience is short and it may take a full day to get your tax return completed.

Where do I pay my taxes?

At your local tax authority. In Taipei City, go to 2, Chunghua Road, Sec. 1. In Kaohsiung, go to 148, Kuangchou First Street.

What do I do if I don't speak Chinese?

Don't panic. The forms are bilingual and English-language instructions are available. At the Taipei and Kaohsiung centers, staff who deal with foreigners speak at least a little English.

If you live in another area, visit the Kaohsiung center's Web site at http://www.ntak.gov.tw/forei/eng.html. They explain in English the application process and answer some frequently asked questions.

Service in other languages is pretty much non-existent. For Japanese, Thai, Tagalog or Bahasa Indonesian, you might just be out of luck.

What happens if I don't file my taxes?

They'll find you. The National Tax Administration cooperates with the foreign affairs police so that if they don't find you while you're living in Taiwan, they'll get you at the airport on your way out. If you file late, you'll have to pay triple the amount you were supposed to pay by the regular deadline.

It used to be that you had to get a tax certificate before leaving the country. Now that you don't need this anymore, it looks easier to dodge taxes by just going to the airport. But the tax authority and immigration cooperate to catch dodgers. And yes, people do try to evade every year.

Can I claim exemption for my dependents abroad?

Yes. If you have children or elderly relatives who you support and they don't live with you here in Taiwan, you can receive a tax deduction for them. They must be under 20 or over 60 and unable to make a living.

What kind of exemptions are there?

School fees, donations to charity, freelance fees below NT$180,000. Special deductions for disability are also available. Insurance premiums, medical bills and disaster losses are also deductible. 921 earthquake victims aren't likely to benefit because they received aid and special compensation.

Do I have to pay taxes on my income if it goes into an offshore account?