Foreigners Who Stay in Taiwan For Working Holiday May Claim Tax Refund According to The Income Tax Act

National Taxation Bureau of Taipei (NTBT), Ministry of Finance indicated that, foreigners who apply for working holiday in Taiwan and whose length of stay are 183 days or more in a taxable year, can get their refund after filing tax returns at the district tax office.

Cases regarding telephone inquiries from Australian and Japanese taxpayers for uncertain eligibility of having refunds reveals those who stay in Taiwan for working holiday are not familiar with the relevant tax laws.

NTBT pointed that out, for foreigners who engage in working holiday mostly apply short-term visa instead of Alien Resident Certificate (ARC). Given that, employers would withhold salary at 18% based on the regulations of "non-resident of ROC" stipulated in Article 7 of the Income Tax Act.

Rumor has it that foreigners can't apply for refund if he/she is here for working holiday. To deter this speculation, NTBT emphasizes that, any foreigner staying for 183 days or more can go to the district tax office to file the tax return, and then claim the tax refund. The so-called district tax office refers to the address registered on the ARC, or to the address shown on the withholding tax statement for the cases without ARCs. Foreigners living in Taipei/Kaohsiung City are required to file income tax returns to the head office of National Taxation Bureau of Taipei/Kaohsiung.

NTBT called on that, a foreigner coming to Taiwan for working holiday, shall file tax returns before leaving the country if he/she expects any tax refund. Any queries related, especially for the sake of taxpayers' rights, please do contact the district tax office for the necessary procedures.