Taxes in Taiwan part 2 – Part one is here.
Taiwan Tax Analysis in 2022
Taiwan has one of the highest average tax rates, if not the highest in Asia. According to a study by KPMG, Taiwan’s average effective rate of taxation is as high as 45%. While this is a common knowledge to many Taiwanese citizens, what is less known is that there are actually different categories of taxes levied on Taiwanese citizens and businesses. The two most prevalent taxes are income tax and value-added tax (VAT).
Taiwanese income tax rates range from 5% for those earning between TWD 30,001 and TWD 60,000 to 45% for above TWD 1 million (USD 33,812) a year. There is, however, a minimum threshold known as the basic exemption. Any individual (or married couple) who earns below TWD 240,001 (USD 8,228) per year does not need to pay income tax.
This means that all Taiwanese citizens earning less than TWD 240,001 (USD 8,228), from either working or unemployed, are exempt from paying income tax. This is, of course excluding individuals (or married couples) earning dividend or interest income, which would be taxed at a rate of 5%.
Value-added Tax (VAT)
Taiwan’s VAT is calculated on the purchase price of most goods and services sold in Taiwan. There are five lower rates of 6%, 11%, 13%, 14%, and 15%. There is one higher rate of 20%. The five lower rates are for certain medical services, exports, books, foodstuffs, and printed matter. The only exception to business VAT is the wholesale purchase of gold bullion – in this case, there is no VAT imposed.
Taiwan’s VAT is currently levied at 6%, 11%, 13%, 14%, or 15%. While the Taiwanese income tax rate may be higher than in most other countries, this is offset by its average 23% corporate tax rate. The highest corporate tax rate in Asia is Japan’s 30.9%. The Taiwanese government also grants additional deductions to companies that invest in R&D.
These two taxes alone, however, are not enough to cover all of Taiwan’s government expenditure. The Taiwanese government collects a number of different types of taxes on its citizens and businesses to balance the budget. There is the property tax on both business and private properties; there is consumption tax such as sales tax and cigarette & alcohol tax; and business tax, automobile tax, and unemployment insurance.
Understanding the Best Places to Live
Where can a foreigner go in Taiwan to get the most benefits from their experience? Do you want to work in high-tech, or do you need a low cost of living? Do you want to speak Mandarin for your job, or should you settle somewhere nobody knows English at all? In this article, we will look at the best places that a foreigner can go in Taiwan to get the most out of their work and play.
The first spot on our list is reserved for Changhua, a city known as ” The Heart of Taiwan,” which sounds more romantic than it really is. This is another city without great access to the sea, but it does have a central market area. If you want to work in high-tech, this isn’t your best bet.
Instead, you’ll probably be working on apparel manufacturing or food production, but if neither of those is your cup of tea, Changhua will do just fine for most foreigners. The downtown area is also where you’ll find the majority of foreigners in the city, and it’s a pretty safe area but if you want to be around even more expats, then head on over to Tongxiao.
You can get there by catching a train or bus from Changhua Station, and once you’re there, you’ll find that Tongxiao is teeming with foreigners. Just like the rest of Taiwan, it’s pretty easy to get around Changhua using public transport, so you can easily go out in the evening for some drinks or use taxis when you want to get your hair cut or buy new clothes.
Next up is Taiwan’s capital city – Taipei, which has over 3 million people. This can be overwhelming at first, but there are plenty of expats out and about, so you won’t feel like a total foreigner. If you come here, you’ll be near the sea (but not right on the coast), which means that you can always escape for a day trip to Kenting, one of Taiwan’s most famous beach resorts.
Another reason why Taipei is great is that it’s the only place in Taiwan with an MRT system that reaches into the suburbs. You can go pretty much anywhere using this railway, and even though buses are easy to navigate, you’ll want to use public transport whenever possible because traffic is constantly bad. There are tons of different kinds of people living in Taipei, so if you’re looking for something specific (or someone), you’ll likely find it here.
Taipei is also very clean and modern, and while you won’t find a ton of foreigners out in the streets, there are lots of great international restaurants to choose from all over the city. Just make sure to get a local SIM card before arriving so you can get around more easily!
The third spot on our list is reserved for another city full of Taiwanese charm – Taichung. You could probably name a million things that make this place one of the best places to live in Taiwan, but we’re going to highlight just a few. First of all, it’s easy to get around by MRT, bus, or even on your own two feet. So, if you’re committed to not having a car but still want to live in Taiwan, this is one of the best choices out there.
Taichung has an incredibly rich cultural history that will be right up until anyone’s alley, and the city is also home to Taiwan’s main university – National Taiwan University (NTU). You’ll find that pretty much all of your friends will be studying there if you move here, so it shouldn’t take long before you know someone.
There are lots of different international cuisines available in Taichung, too, including some fabulous Mexican and Indian restaurants. The city also doesn’t have as much traffic as other places in Taiwan, so it’s a great spot to come if you’re sick of sitting in cars for hours on end every day and would much rather ride a bike instead (just be careful because drivers aren’t used to cyclists here)
Although you can’t really call Kenting a city, it’s definitely one of the best places to live in Taiwan. It’s right on the southeast coast, which means that you get to sit by the sea all day if you want or hang out in some of the most beautiful national parks around.
Kenting is also great because it’s got a very laid-back, chilled-out vibe. There are lots of surfers in the area, so if you love being near the sea, this place is perfect. Everyone speaks really good English here, too, so don’t worry about struggling to communicate with people at all.
Kenting doesn’t have an MRT system or anything like that, but it’s not a big place, and once you’ve moved here, walking everywhere will be a breeze. One of the best things about Kenting is that it’s got a really nice mix of Taiwanese and Western culture – something that all expats would love, I’m sure!
Coming in at number five on our list of the best places to live in Taiwan is Tainan, a city known as Taiwan’s cultural capital. It’s got a lot going for it when it comes to being a place where you can really enjoy living and working, but we’re going to highlight three reasons why this can be your new home.
The first thing about Tainan is that it’s very close to the sea, making it perfect for people who love seafood (like me!). You’ll find some amazing restaurants here full of every kind of fish you could ever dream of, and lots of them are actually cheap too.
Taxes are an unavoidable part of life. However, different countries tax their citizens in different ways. In Taiwan, the taxes are generally pretty low compared to other developed nations. Do you want to find out more about them! Ensure you visit this platform always for more updates.