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Tax Payments Guidelines
  1. General Guidelines of Tax Payments
    1. The taxable year is according to the calendar year, defined as 1 January to 31 December. Please note that this is different from the academic year (which is generally defined as 1 September to 31 August of the following year).
    2. A taxpayer staying in Taiwan for 183 days or more during one calendar year must file an income tax return/ report your earnings to the tax bureau for that calendar year. Ex: A taxpayer staying in Taiwan for 183 days or more between 1 Jan. 2015 and 31 Dec.2015 must file an income tax return/ report your earnings to the tax bureau during the filing period of 1-31May 2016. The tax rate will be equivalent to the rate for Taiwanese nationals.
    3. Only the fellowship from the TIGP office is tax free; the stipend from the advisor's lab grant is taxable. For TIGP students meeting merit-based standards, the TIGP office will provide:
      • a fellowship of NT34000/month for the 1st and 2nd years
      • a fellowship of NT10000/month for the 3rd year (tax free) to be supplemented by the advisor (taxable)
      The advisor will provide the entirety of the stipend (taxable) for the 4th year and beyond.
    4. Once you start receiving money from your advisor, you must file an income tax return for that calendar year. Therefore, students in 3rd year and beyond should pay careful attention to the deadlines.
  2. Quick Calculation
    1. Please note that the following webpage is only for tax calculation, and is not valid for tax filing. TIGP students frequently use items marked with an orange star.
      https://www.etax.nat.gov.tw/etwmain/front/ETW158W13?site=en
    2. The institute or university where you work may withhold a certain percentage of your salary for tax payment. The tax rate is 20% if you stay in Taiwan fewer than 183 days; the rate 5-6% if you stay over 183 days. If withheld amount exceeds tax payable, the overpaid amount will be refunded to you. Ask the accountant in your institute or department to find out if any taxes are withheld from your stipend.
    3. The following example is based on a student receiving NT24000/month during 3rd year and NT34000/month during 4th year and onwards from the advisor. Please note that 1) stipend support is based on the academic year (1 Sep -31 Aug), so the tax calculations are divided into two parts; 2) These numbers are examples. Your own numbers may vary.
      • 2017 Tax Return: The stipend from 1 Sep to31 Dec 2017 (3rd year) is 24000/month x 4 months = 96000. This is the entirety of the student's annual salary during 2017, so the student does not owe any tax (Fig. 1). Any amount withheld by AS or the university will be refunded when the student files the income tax return in 2018 (1-31 May).
      • 2018 Tax Return: The stipend from 1 Jan to 31 Aug 2018 (3rd year) is 24000/month x 8 months and the stipend from 1 Sep to 31 Dec 2018 (4th year) is 34000/month x 4 months. In total, the student's annual salary during 2018 is NT328000, so the student will owe roughly NT1250 in taxes (Fig. 2) to be paid when the student files the income tax return in 2019 (1-31 May).
      • 2019 Tax Return: The stipend from 1 Jan to 31 Aug 2019 (4th year) and from 1 Sep to 31 Dec 2019 (5th year) is 34000/month x 12 months for an annual salary of NT409000 for 2019, so the student will owe roughly NT5250 in taxes to be paid when the student files the income tax return in 2020 (May 1-31). A married couple's annual tax rate can be reduced to NT1000.
  3. Tax Filing

    A foreign national has several ways to file income tax each year:

    1. Take your ARC to the local revenue office for assistance in filing your income tax return. The local revenue office corresponds to the address listed on your ARC. Filing a tax return takes time, so expect to wait during the filing period.
      Taipei city revenue office Northern Taiwan revenue office
      Central Taiwan revenue office Southern Taiwan revenue office
    2. E-filing: Download tax e-filing software Take your ARC to the local revenue office to obtain a 10-character tax checking code to use the software. This service will not take much time. You can also register your NHI card at the local NHI office then use your NHI card and a card reader to use the software.