Are you a digital nomad, expat, or location-independent worker looking to make Taiwan your tax home? Welcome to a vibrant island that offers not only a rich cultural experience but also the opportunity to establish your tax residency. Follow these steps to understand how you can obtain tax residency in Taiwan.
Step 1: Determine Eligibility
To establish tax residency in Taiwan, you need to stay in the country for at least 183 days within a calendar year. Ensure you keep a record of all your entries and exits from Taiwan as these will be needed for verification.
Step 2: Obtain an Alien Resident Certificate (ARC)
Apply for an ARC at the National Immigration Agency. This document serves as proof of your legal status in Taiwan. You will need a valid passport, a completed application form, and possibly additional documents depending on your specific circumstances.
Step 3: Register Your Address
Once you have your ARC, you must register your residential address at the local household registration office. This step is crucial as it officially ties you to a location in Taiwan.
Step 4: Open a Local Bank Account
Visit a local bank to open a savings account. You will need your ARC, passport, and proof of address. A local bank account is essential for managing financial transactions and can serve as proof of your ties to Taiwan.
Step 5: Maintain Substantial Ties to Taiwan
Beyond physical presence, you should demonstrate substantial ties to Taiwan, such as renting or owning property, having family members in Taiwan, or engaging in local business activities. Documentation such as rental agreements, business contracts, or school records for children can be useful.
Step 6: File Income Tax Return
At the end of the tax year, file an income tax return with the National Taxation Bureau. Ensure all your global income is reported. Failure to file taxes can jeopardize your tax residency status.
Legal References
- Income Tax Act of the Republic of China (Taiwan)
- Regulations Governing the Implementation of the Income Tax Act
- National Immigration Agency guidelines
Useful Links
- Ministry of Finance, Taiwan
- National Taxation Bureau of Taipei
- National Taxation Bureau of the Central Area
- National Taxation Bureau of the Southern Area
- National Taxation Bureau of the Northern Area
- National Taxation Bureau of Kaohsiung
