When I first arrived in Taiwan for work, I kept hearing stories about “refunds”. Some workers said they got money back after leaving the country. Others waited years only to realize they were never eligible. The truth is that Taiwan refunds are not as simple as many agencies make them sound. Some refunds exist. Others don’t. And most workers only understand the rules when it’s already too late.
If you’re an OFW in Taiwan, or preparing to work here soon, let me walk you through the real refund system based on lived experience, updated rules, and what most agencies fail to explain clearly.
This breakdown covers the four areas that matter most
- Income tax refunds
- National Health Insurance (NHI) premium issues
- Labor Insurance and pension benefits
- Recruitment fee refunds from Philippine agencies
Why Refunds in Taiwan Confuse So Many OFWs
Many OFWs expect that once they work a few years abroad, something will automatically “return” to them. But Taiwan’s system is more structured. Some contributions work like savings. Others function like actual taxes. Some can be claimed back. Others are strictly for long-term benefits.
A lot of misunderstanding happens because some agencies explain only the basics, usually the parts that sound good during recruitment. What they don’t explain is the fine print: timing, eligibility, penalties, how residency affects taxes, and what happens if you fail to submit documents on time.
Let’s break it down one by one.
Income Tax Refunds in Taiwan: What OFWs Actually Get
One of the first things most OFWs ask is, “Makakakuha ba ako ng tax refund?”
The answer: Sometimes yes, sometimes no. It depends on your residency status.
Tax Residency Basics
Taiwan does not use the same tax rules as the Philippines. Your status depends on how many days you stayed in Taiwan within a tax year.
- Less than 90 days – employer may shoulder your tax.
- 91 to 183 days – non-resident; usually taxed at higher flat rates such as 18 percent (common for factory workers during year one).
- 184 days and above – resident; taxed under progressive rates (usually lower overall).
When you become a resident taxpayer, your employer may apply 6 percent withholding. After the year ends, your total taxes are recalculated. If you overpaid, you get a refund.
The Catch Agencies Never Explain
If you leave Taiwan permanently, you must file a tax return 10 days before departure.
If you miss this window, your refund may be delayed for months or forfeited entirely until you fix your status.
Most OFWs only discover this when they’re already booked for a flight home.
Common Scenarios
- First-year workers often overpay taxes and receive a refund the following year.
- Workers on short contracts may not get any refund if they fail to reach 183 days.
- Caregivers with lower income may receive small refunds or none depending on salary and deductions.
- Those leaving early (terminated, transferred, or ending contract abruptly) must still file early returns.
The rule is simple:
If you paid more than what your actual annual tax liability should be, you get a refund. If not, you don’t.
National Health Insurance (NHI): Why Some OFWs Owe Money Before Leaving
Before 2024, OFWs could suspend NHI more easily. Now, rules have changed. Suspensions are no longer automatically approved, and long absences can lead to retroactive premium charges.
What Changed?
Earlier, if you went home for a long vacation or went missing from work, you could request an NHI suspension and avoid premiums. Today:
- Suspensions have stricter requirements
- You must follow updated procedures
- If you fail to report absences correctly, you may still owe premiums
- Returning to Taiwan may involve a waiting period before coverage resumes
- Some workers are billed retroactively because the system assumes they remained insured
Agencies rarely explain this, and the burden falls on the worker.
Why It Matters for Refunds
Many OFWs mistakenly expect NHI refunds. But NHI contributions are not refundable. They function like PhilHealth—mandatory coverage during your stay.
You do not get the money back.
What you can do is ensure:
- Your contributions are properly recorded
- Your enrollment is ended correctly when you leave
- You avoid penalties and unpaid premiums
Most workers don’t learn this until they see unexpected deductions in their final payroll.
Labor Insurance and Pension: What You Can Actually Claim
Labor Insurance is where things get more complicated, because some parts are refundable while others are long-term benefits only.
What Labor Insurance Covers
As a foreign worker, you are automatically enrolled (except certain household workers depending on employer). Your contributions go to:
- Work-related injury or sickness benefits
- Disability benefits
- Survivor benefits
- Maternity benefits
- Old-age benefits
But here’s the important part:
Not All Contributions Are Refundable
Some contributions form part of a retirement fund under Taiwan’s Bureau of Labor Insurance (BLI). These are not immediately claimable when you go home. They follow a schedule based on age, rule changes, and eligibility.
Some OFWs assume they’ll get a large lump sum when they leave Taiwan. In reality:
- Some funds are only claimable at retirement age
- Some depend on total years of contributions
- Some benefits apply only if certain conditions are met (injury, disability, etc.)
- Some cannot be withdrawn early unless you change status permanently
What You Can Claim Before Going Home
You can request:
- Labor Insurance beneficiary records
- Contribution statements
- Certificates needed to claim future entitlements
If you don’t get these documents before leaving, you may have trouble claiming benefits later—especially if you change phone numbers or lose access to your online records.
Tourist VAT Refunds: Why OFWs Are Not Eligible
Tourist VAT refunds in Taiwan look attractive, especially when you see signage in big malls. But these are for short-stay visitors.
To qualify, you must:
- Be a tourist
- Stay fewer than 183 days in Taiwan in a year
- Purchase at least NT$2,000 from the same store on the same day
- Take the item out of Taiwan within 90 days
OFWs are not tourists. Once you have an ARC, you are classified as a resident. Even if you fly home for vacation, you still don’t qualify for VAT refunds.
Some workers try to line up at the airport anyway, only to be rejected.
Recruitment and Agency Fee Refunds in the Philippines
This is where many workers get confused, and where agencies sometimes take advantage.
When Refunds Apply
You may get refunds from a Philippine agency if:
- They fail to deploy you
- They overcharged you
- They charged illegal fees
- They did not follow DMW rules on allowable costs
- They delayed your deployment without valid reason
Under DMW rules, agencies must return:
- Full receipted deployment fees
- Medical check-up fees (if receipted)
- Training fees (if not used for deployment)
- Placement fees (illegal for Taiwan since “No Placement Fee” country)
- Other unlawful charges
You can file complaints through:
- DMW
- POEA adjudication
- NLRC (for wage claims if already deployed)
Agencies rarely tell you that administrative remedies exist — including:
- Refund orders
- Interests
- Agency sanctions
- License suspension
Keeping receipts, contracts, and online conversations is crucial.
Real Risks Most OFWs Don’t Discover Until It’s Too Late
Through the years, many Filipino workers in Taiwan share similar painful stories. These are the risks I wish someone told me early on:
- Missing the 10-day early filing for tax refunds
Most OFWs only hear about it from co-workers days before their flight.
- Retroactive NHI premiums
Some workers go home for months believing their NHI was suspended, only to learn they owe a large amount.
- Unclaimed Labor Insurance benefits
Many don’t collect their records before leaving Taiwan.
- Losing access to pension contributions
Once your Taiwan mobile number expires, you cannot log in to your account.
- Agencies keeping unlawful fees
Workers who don’t file complaints within the right timeline lose their chance to claim refunds.
These problems are preventable — but only if you know the rules early.
Practical Checklist: What Every OFW Should Do Before Leaving Taiwan
Before your contract ends or before you resign, complete these steps.
Income Tax
- Confirm how many days you stayed in Taiwan
- Check if you’re resident or non-resident for tax purposes
- Ask your employer for your withholding record
- File your early departure tax return at least 10 days before your flight
NHI
- Request a termination certificate
- Check if you owe unpaid premiums
- Ensure your employer updates your NHI status
- Save receipts or proof of payments
Labor Insurance and Pension
- Download or print your BLI contribution records
- Request a Labor Insurance coverage certificate
- Ask HR for your final settlement details
- Save your BLI login credentials
Recruitment and Agency Fees
If deployment fails or you were charged illegal fees:
- Keep all receipts
- Screenshot conversations and payment proofs
- File a complaint at DMW if necessary
- Follow up until the refund is completed
VAT/Tourist Refund
- Don’t line up at the counter unless you are truly a tourist
- Remember: ARC holders are not eligible
Conclusion: Taiwan Refunds Are Real — But Only If You Understand the System
Working in Taiwan comes with real financial responsibilities and entitlements. Some contributions are refundable. Others are long-term protections. The key is not to rely on verbal explanations from agencies or co-workers.
Understanding your:
- tax residency
- NHI status
- Labor Insurance rights
- recruitment fee protections
…can save you thousands of pesos and many months of stress.
You earned your money. You deserve to keep as much of it as possible.