November 12, 1999

Q&A

Q:What taxes do migrant workers have to pay, and will they get their taxes refunded to them?

A:Migrant workers must file their taxes for the previous year between February 20-31, but this is usually handled by employers.

Tax rates for foreign workers depends on the amount of time they have spent in Taiwan: The tax rate is 6% for workers who have resided in Taiwan over 183 days during a one-year period.

That is, workers who entered the country on or before July 2 of the previous year qualify for a tax rate of 6%.

The tax rate is 20% for workers who have resided in Taiwan under 183 days. That is, workers who entered the country on or after July 3 of the previous year qualify for a tax rate of 20%. Note: Workers who reside in Taiwan for under 183 days the previous year must begin counting their period of residence beginning on January 1 of the next year. They must still pay a tax rate of 20% for that year until they reside 183 days in that year.

For example, if you arrive in Taiwan on October 1, 1998 and leave on June 1, 1999, you must pay a tax rate of 20% for the 1998 as the total residence time in Taiwan is less than 183 days (31+30+31=92 days); the tax rate for 1999 is also 20% as you will not have resided in Taiwan for more than 183 days (31+28+31+30+31+1=152 days) Refunded taxes can be collected in September of each year.

Q : What is the difference between craft union and industrial union?

A: In Taiwan's trade union law, trade unions are divided into craft unions and industrial unions. Members of craft union are workers of the same craft, such as tailors or carpenters. Industrial unions are composed of workers of each individual workplace: a factory, an office, etc. Members of industrial unions tend to be genuine working class. Yet, since their organizations are confined to each individual workplace, they are not big enough to bargain meaningfully with their employers. Therefore, it's vital for the industrial unions to form federations.

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