Site Search:
 
TEFL International Supports Dave's ESL Cafe
TEFL Courses, TESOL Course, English Teaching Jobs - TEFL International
Korean Job Discussion Forums Forum Index Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
 
 FAQFAQ   SearchSearch   MemberlistMemberlist   UsergroupsUsergroups   RegisterRegister 
 ProfileProfile   Log in to check your private messagesLog in to check your private messages   Log inLog in 

Just heard a tax-related horror story... freaking out.
Goto page 1, 2  Next
 
Post new topic   Reply to topic    Korean Job Discussion Forums Forum Index -> Job-related Discussion Forum
View previous topic :: View next topic  
Author Message
is so delicious



Joined: 28 Apr 2009

PostPosted: Thu Jan 02, 2014 7:05 pm    Post subject: Just heard a tax-related horror story... freaking out. Reply with quote

I just talked to someone who claims that since 2007, there is a separate tax all foreign teachers (or maybe everyone?) are required to pay that is NOT the 3.3% tax your employer pays every month.

Apparently the tax office has not done a thorough job of getting this information to us... I have NEVER heard of anything like this, but he swears it's true. He said he suddenly got a bill for like six million won and had to pay it, along with a million in penalties. Apparently the tax office is now cracking down and people have started having issues getting a new visa (because of not paying it).

I literally do not know anyone who has filed taxes in Korea and paid a separate tax aside from the one that is deducted automatically from your monthly pay. That may just be because I hang out with degenerates, but... PLEASE tell me this is just more ESL scaremongering!!
Back to top
View user's profile Send private message
World Traveler



Joined: 29 May 2009

PostPosted: Thu Jan 02, 2014 7:11 pm    Post subject: Reply with quote

Here's another horror story: Some hagwons withdraw the tax amount (maybe 3.3% or maybe something else) from the foreigner's paycheck, but instead of paying that money to the tax office, keep it for themselves. That happened to me and it happened to many others. As an employee, it is your responsibility to make sure you are paying the correct amount of taxes. Sucks, especially because no one at the tax office speaks English.
Back to top
View user's profile Send private message
Lucas



Joined: 11 Sep 2012

PostPosted: Thu Jan 02, 2014 7:16 pm    Post subject: Reply with quote

Quote:
I just talked to someone who claims that since 2007, there is a separate tax all foreign teachers (or maybe everyone?) are required to pay that is NOT the 3.3% tax your employer pays every month.

Apparently the tax office has not done a thorough job of getting this information to us... I have NEVER heard of anything like this, but he swears it's true. He said he suddenly got a bill for like six million won and had to pay it, along with a million in penalties. Apparently the tax office is now cracking down and people have started having issues getting a new visa (because of not paying it).

I literally do not know anyone who has filed taxes in Korea and paid a separate tax aside from the one that is deducted automatically from your monthly pay. That may just be because I hang out with degenerates, but... PLEASE tell me this is just more ESL scaremongering!!


It's linked to Obama care.
Back to top
View user's profile Send private message
schwa



Joined: 18 Jan 2003
Location: sokcho

PostPosted: Thu Jan 02, 2014 9:34 pm    Post subject: Reply with quote

There was an income tax revision about that time. My recollection of the details is fuzzy, but I think it had something to do with revocation of a special tax deduction for foreigners as well as broadening the definition of taxable income, to include various extra cash benefits.

My public school & others I knew of were slow on the uptake & I got dinged an additional 2 million a year later.

But its hard to imagine a school or business underpaying all these years since & it going unnoticed.
Back to top
View user's profile Send private message
nicwr2002



Joined: 17 Aug 2011

PostPosted: Thu Jan 02, 2014 10:34 pm    Post subject: Reply with quote

There are a lot of things we don't know about. Don't freak out though. Your friend's probably never paid his taxes. Your friend could have never registered his bank account with the tax service and had to pay a fee. This happened to me even though I thought I would get a refund. They want to keep track of where you spend your money.
Back to top
View user's profile Send private message
Rockhard



Joined: 11 Dec 2013

PostPosted: Fri Jan 03, 2014 4:46 am    Post subject: Reply with quote

It happened to me. I mentioned it on here I think and just got totally ignored. Most people never stayed long enough to get investigated so it wasn't a problem for most.

It was my second year. I was under the impression I was employee since that's what my contract said. Thought it was my employee's duty to file my taxes since I was working there at the time. They just didn't do it, nor told me about it, nor stated my income correctly, nor paid enough taxes to the office. I was fined $3,000.

I get that I was a dummy and should've known more about my status and their responsibilities, but damn, to say I was $3,300 a month when I was only making $2,400. that's low. Of course, they went bankrupt and I couldn't bring them to court. Korea
Back to top
View user's profile Send private message
cazzy3



Joined: 07 May 2008
Location: kangwon-do

PostPosted: Fri Jan 03, 2014 7:11 am    Post subject: Reply with quote

The amount seems to be high, but it did happen to me back in '08. School messed up and I had to pay about 1 million. Had some buddies last year basically lose their last months salary because of the same problem.

Make sure you get your yearly tax information from your school. Also, make sure you tell them to file your taxes with all pertinent info such as spouse, dependents, etc.. There is also a need to give them your bank/check card account so that they can use that information to get money back. Most public school can do this service...hagwons....I very much doubt it.
Back to top
View user's profile Send private message
EZE



Joined: 05 May 2012

PostPosted: Fri Jan 03, 2014 7:29 am    Post subject: Reply with quote

I doubt anyone teaching for less than a year or two will get fined. You'd probably have to be damn near a lifer, as long as the Korean government offices take to do anything. I used to think the Department of Motor Vehicles in the USA had the laziest personnel of any entity in the world until I came to South Korea. I've been dealing with the pension office and health insurance office for nearly a year about a matter, and I've done most of the legwork for them. They're still working on it. They're slower than Christmas, literally slower than Christmas, since Christmas has come and gone and here we are in 2014.

So if you're here less than a year or two, don't even worry about it. They'll never get around to catching you, even if you turn yourself in.
Back to top
View user's profile Send private message
Porksta



Joined: 05 May 2011

PostPosted: Sun Jan 05, 2014 4:36 pm    Post subject: Reply with quote

Kind of funny that the OP posts about a tax horror story and yet doesn't know that they are being taxed twice what they should be paying.
Back to top
View user's profile Send private message
happiness



Joined: 04 Sep 2010

PostPosted: Sun Jan 05, 2014 5:45 pm    Post subject: Reply with quote

I think as long as you have kept ALL your tax receipts to show your company said they paid your taxes, it would save you from liability. No?
Back to top
View user's profile Send private message
LifeLine



Joined: 26 Dec 2013

PostPosted: Sun Jan 05, 2014 6:10 pm    Post subject: Reply with quote

Porksta wrote:
Kind of funny that the OP posts about a tax horror story and yet doesn't know that they are being taxed twice what they should be paying.


I hear this being said all the time on the contract review thread... are you sure you are right? Maybe this is what the OP is actually referring to without realizing it.

So these contracts stating 3.3% income tax is now the new revised taxed, and the people who have been teaching for a while are the ones actually a bit more out of the loop.
Back to top
View user's profile Send private message
augustine



Joined: 08 Sep 2012
Location: México

PostPosted: Sun Jan 05, 2014 7:40 pm    Post subject: Reply with quote

LifeLine wrote:
Porksta wrote:
Kind of funny that the OP posts about a tax horror story and yet doesn't know that they are being taxed twice what they should be paying.


I hear this being said all the time on the contract review thread... are you sure you are right? Maybe this is what the OP is actually referring to without realizing it.

So these contracts stating 3.3% income tax is now the new revised taxed, and the people who have been teaching for a while are the ones actually a bit more out of the loop.


That's cute. No, it's almost entirely indicative of the kinds of thieves and cheaters so many Koreans are.
Back to top
View user's profile Send private message
jackson7



Joined: 01 Aug 2006
Location: Kim Jong Il's Future Fireball

PostPosted: Mon Jan 06, 2014 1:21 am    Post subject: Reply with quote

Insist that you receive a copy of your tax return (your employer files for you here). Seven years ago I asked my manager at the time why the foreign staff didn't receive a tax return (all the Korean employees were celebrating big refunds) and he said, "Foreigners don't do that."

After some checking, they realized that we of course do, and we all received around 600,000 back (this was during the old discount days -- when foreigners received 20 or 30% off the top of their income before being taxed). These days you might get some cash back, or you might pay a bit, but at least you'll know everything is on the up and up.

If you're doing graduate school programs or the like, you can greatly reduce your taxable income and will likely receive a hefty refund. I've been getting over a million back during the past few years I've been doing my doctoral program, which has only slightly lessened the pain of paying tuition and fees to jolly ol' England.

J7
Back to top
View user's profile Send private message
FriendlyDaegu



Joined: 26 Aug 2012

PostPosted: Mon Jan 06, 2014 2:15 am    Post subject: Reply with quote

LifeLine wrote:

So these contracts stating 3.3% income tax is now the new revised taxed, and the people who have been teaching for a while are the ones actually a bit more out of the loop.


What new revised tax? I think it's well understood that 3.3 is the withholding rate for ICs and the rate for teacher employees depends on salary, but is usually close to 2%. Anyway, those are just withholding numbers and the real tax rate is the same for everyone, foreign and Korean, IC or employee, AFAIK. As long as you're in Korea come tax time to collect the return, of course. Everyone is justified in asking for their tax documents to make sure everything checks out.

The only recent change I've heard is that the cap went up to 17% for high earning foreigners (had been 15% for many years). As a number of others said, there was a big 30% deduction available to us a while back, but I last got that in 2009.
Back to top
View user's profile Send private message
Milwaukiedave



Joined: 02 Oct 2004
Location: Bucheon

PostPosted: Mon Jan 06, 2014 5:20 am    Post subject: Reply with quote

jackson7 wrote:
Insist that you receive a copy of your tax return (your employer files for you here). Seven years ago I asked my manager at the time why the foreign staff didn't receive a tax return (all the Korean employees were celebrating big refunds) and he said, "Foreigners don't do that."

After some checking, they realized that we of course do, and we all being taxed). These days you might get some cash back, or you might pay a bit, but at least you'll know everything is on the up and up.
received around 600,000 back (this was during the old discount days -- when foreigners received 20 or 30% off the top of their income before
If you're doing graduate school programs or the like, you can greatly reduce your taxable income and will likely receive a hefty refund. I've been getting over a million back during the past few years I've been doing my doctoral program, which has only slightly lessened the pain of paying tuition and fees to jolly ol' England.J7


I have never gotten a return from my employer either before 2011. I think that is pretty common in Korea. I started requesting copies for the same reasons, deductions. If you own a car you can deduct your auto insurance as well. I'm also getting deductions for my doctoral degree when I'm working (took some time off for awhile). The year I went in and did my tax return I got 350,000 back instead of a mere 80,000.
Back to top
View user's profile Send private message
Display posts from previous:   
Post new topic   Reply to topic    Korean Job Discussion Forums Forum Index -> Job-related Discussion Forum All times are GMT - 8 Hours
Goto page 1, 2  Next
Page 1 of 2

 
Jump to:  
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum


This page is maintained by the one and only Dave Sperling.
Contact Dave's ESL Cafe
Copyright © 2013 Dave Sperling. All Rights Reserved.

Powered by phpBB © 2001, 2002 phpBB Group

TEFL International Supports Dave's ESL Cafe
TEFL Courses, TESOL Course, English Teaching Jobs - TEFL International