Tiawan government remittance Autor de la hebra: CindyFay
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I’m hoping to get some feedback from others experiences with this. We were recently shorted on an invoice for a customer by 20%. It was for a job for a company in Taiwan. The customer indicates: “In the country of Taiwan, we are required by law to withhold 20% and remit to the government.”
Two questions:
1. Has anyone ever run into this with Taiwan or any other countries?
2. Were you given any information up front on these taxes before doing the job(s)?
... See more I’m hoping to get some feedback from others experiences with this. We were recently shorted on an invoice for a customer by 20%. It was for a job for a company in Taiwan. The customer indicates: “In the country of Taiwan, we are required by law to withhold 20% and remit to the government.”
Two questions:
1. Has anyone ever run into this with Taiwan or any other countries?
2. Were you given any information up front on these taxes before doing the job(s)?
Thank you. ▲ Collapse
| | | | Jean Chao (X) 
Estados Unidos
Local time: 16:15
inglés al chino
+ ...
| Yes, this tax is required by the government, but... | Jun 4, 2015 |
the company in Taiwan should have told you upfront out of professional business practice and courtesy. What you might want to check with the company is that whether this remittance will be partially or totally returned after the tax is filed and settled next year.
Good luck.
| | | | | This comes up again and again | Jun 4, 2015 |
It's happening around the world. And 99% of the cases we hear about (if not 100%) are erroneous, mistakes caused by frightened business people being hopelessly confused about their own country's tax laws.
It's quite likely that they do have to pay 20% of the invoice amount of a locally-based freelancer directly to the tax authorities. The same happens here in Spain. But it most certainly does not apply across national boundaries.
It isn't up to your non-domestic client... See more It's happening around the world. And 99% of the cases we hear about (if not 100%) are erroneous, mistakes caused by frightened business people being hopelessly confused about their own country's tax laws.
It's quite likely that they do have to pay 20% of the invoice amount of a locally-based freelancer directly to the tax authorities. The same happens here in Spain. But it most certainly does not apply across national boundaries.
It isn't up to your non-domestic clients to pay your taxes, when you don't owe a cent to their country. You pay your taxes in your own country (presumably ), not in all your clents' countries. Heaven forbid! (I invoice clients in a good 20 countries per year and I certainly don't want to get involved in all their tax administrations!)
I personally think you need to contest this immediately. Waiting for them to give it back, or expecting the two governments to sort it out between themselves is like waiting for a star to fall in your lap. ▲ Collapse
| | | | | Yes, it's a tax on foreign workers' earnings | Jun 5, 2015 |
This mesure is very discriminatory and protectionist. Be sure to raise your rate when you quote a Taiwanese company.
[Edited at 2015-06-05 04:35 GMT]
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I tried to post about this yesterday, but it somehow disappeared.
This PWC leaflet explains a lot for anyone with patience enough to plough through it.
https://www.pwc.tw/en_TW/tw/publications/assets/taiwan-pocket-tax-book-2011.pdf
It looks as if such a tax may really be required in Taiwan.
Quite outrageous... See more I tried to post about this yesterday, but it somehow disappeared.
This PWC leaflet explains a lot for anyone with patience enough to plough through it.
https://www.pwc.tw/en_TW/tw/publications/assets/taiwan-pocket-tax-book-2011.pdf
It looks as if such a tax may really be required in Taiwan.
Quite outrageous.
If it's a legally required tax, you may be able to use it in your country of residence when filing your tax return to obtain a tax credit corresponding to the tax paid in Taiwan, depending on your national tax law and the double tax convention between your country of residence and Taiwan. In the best case, you may recover it all, and in the worst nothing.
To compensate for the 20 % by increasing your rate, you need to add 25 % to your standard rate.
Example:
You want to be paid $100.
You need to tell them the price is $125.
20 % of $125 is $25, leaving $100 net. ▲ Collapse
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