Visa matters
To work legally in Taiwan, you must have a work permit that specifically states you are permitted to accept employment. Obtaining permission to work can be a challenge. You cannot apply for a work permit without assistance from your potential employer.
Working in general, teaching English without a work permit and working at a different employment address than that specified on the ARC (Alien Resident Certificate) are considered illegal. The Labour Bureau conducts random checks at buxibans and schools from time to time. The consequences of working illegally include fines, immediate deportation and travel bans.
Foreigners are often recruited from abroad. When they arrive in Taiwan, they discover that their prospective employer is not able to arrange for a work permit and resident visa, leaving them stranded and in debt. Contractual disputes, including claims for losses arising from misrepresentation of the terms and conditions of employment, can only be dealt with through the Bureau of Labour Affairs of the municipal government where the employer is located (e.g. the cities of Taipei, Taichung or Kaohsiung). The bureau will seek mediation with the employer. If this approach cannot resolve the matter, the only recourse is the local legal system.
Working legally in Taiwan
In order for you to work legally in Taiwan, your employer must arrange a work permit for you. This can take months to process. The resident visa is granted on condition that you perform the employment for which it is issued. If you terminate your employment for any reason, your employer is required to report this to the police and all necessary paperwork must be processed before you can work for someone else. It is illegal to work for an employer other than the one who sponsored you for your work permit.
Regulations governing foreign workers and alien residency change frequently. For confirmation of regulations and information about fees, contact the nearest Taiwanese diplomatic or consular office if you are outside Taiwan, or an immigration office if you are in Taiwan.
Legal problems
It is your responsibility to understand local laws and obey them. Some foreigners encounter serious legal problems with the Taiwanese immigration authorities because:
- they accept employment as English teachers while in Taiwan on a visitor visa; or
- they agree to teach part-time or teach private classes for an employer other than the one who sponsored them.
According to the Employment Service Act, foreigners working without an employment permit while in Taiwan will be fined and compelled to leave the country without delay. Employers will also be fined.
Contracts and working rights
Foreigner teachers occasionally have contractual disputes with their Taiwanese employers. In Taiwan, a contract is sometimes viewed as an infinitely flexible working agreement, subject to further negotiation. Keep in mind that an oral agreement with an employer can be considered just as important as a written contract. It benefits all parties to have a clear understanding of their contractual obligations.
Foreigners who find themselves in disputes related to contracts or working rights can apply for mediation or help from a municipal foreign worker consultation service center, local labour authorities or independent organizations. For details, see the National Immigration Agency’s Information for Foreigners page.
Housing
A non-Mandarin speaker searching for low-cost accommodation should consider sharing an apartment with another foreigner or an English-speaking Taiwanese. In Taipei, you can check several notice boards on Shida Street or at the Mandarin Training Centre of the National Taiwan Normal University. For those able to speak some basic Mandarin, the non-profit housing service called Tsui Mama is a good option. At a nominal charge, Tsui Mama offers listings of apartments for rent around the city to suit all budgets. Tsui Mama is located at 76 Wenchou Street.
Although living in central Taipei is exciting and convenient, cheaper options are becoming available in more distant locations now that the subway serves areas such as New Taipei City. Most convenient is to share an apartment with someone who has been in Taiwan for some time. You may be asked to sign a contract of a few months and give a deposit, or pay in advance by the month.
Newcomers renting an apartment themselves generally have to sign a one-year lease and give at least one month’s rent as deposit, which they will forfeit if they don’t complete the lease. Utilities such as electricity, water and gas are usually paid separately. Apartments come both furnished and unfurnished. A good place to shop for inexpensive furniture in Taipei is on Chungking South Road, close to the intersection of Tingchow Road. Only a resident of Taiwan can apply for a telephone line, so you will need to find a Taiwanese or a foreigner with an ARC to sign for you.
Income Tax
Any person who receives income from a source within Taiwan must pay Taiwanese income tax. The tax year runs from January 1 to December 31. Foreign taxpayers are divided into two categories: non-residents and residents. Tax rates are determined by length of stay, not the type of visa held by an individual.
Non-residents
A non-resident who works in Taiwan less than 90 days within any tax year will have income tax withheld by the employer (for remuneration received in Taiwan). The individual does not have to file an income tax return. Remuneration paid outside of Taiwan for services rendered in Taiwan will not be subject to Taiwanese tax.
A non-resident who works in Taiwan for more than 90 days but less than 183 days within any tax year will have income tax withheld by the employer (for all remuneration, whether paid inside or outside Taiwan). The individual must file an income tax return. Normally, the extension of any visa beyond 90 days will require a certificate from the Tax Bureau stating that such income taxes have been paid.
Residents
A resident who works in Taiwan for 183 days or more within any tax year must pay income tax at a progressive rate for all income earned in Taiwan, whether this income is actually paid in Taiwan or not. The income tax to be paid is on net income, which allows the taxpayer to qualify for exemptions such as for dependants or certified charitable donations, and a wage earner’s deduction. The taxpayer’s period of residence in Taiwan is calculated from the dates of entry and exit in the individual’s passport. For multiple entries and exits, the days of residence in Taiwan are added up to determine a total period of residence.
For more detailed information, contact:
Taipei National Tax Administration
2 Jhonghua Road, Section 1
Taipei 10802, Taiwan
Tel.: (886) 2-2311-3711
Fax: (886) 2-2389-1052
Medical insurance
Foreign residents holding a valid Alien Resident Certificate for more than four months are eligible to join the National Health Insurance (NHI) program. Those who join the program contribute monthly premiums and are eligible for all NHI-covered benefits. The program is inexpensive and offers very broad coverage. However, it would not fully cover the costs of treating a serious medical problem. Medical bills, especially for hospital stays, can mount up very quickly. Detailed information on the NHI program can be found on the Bureau of National Health Insurance website.
We strongly recommend that foreigner teachers take out additional medical insurance through either Taiwanese insurance companies or home based providers prior to arriving in Taiwan.
All information in this publication is provided on an “as is” basis without warranty of any kind, either expressed or implied. Kangaroo Life Ltd makes all reasonable efforts to ensure that the information contained in this website is accurate. The reader is also encouraged to supplement this information with independent research and professional advice.