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Tax refund procedures
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Gunther



Joined: 01 Sep 2007
Location: opposingdigits.com

PostPosted: Wed Jan 16, 2008 1:45 am    Post subject: Reply with quote

Just spoke to the guy at the National Tax Service... and the Tax rate for teachers at private academy's is 3.3%, because you are regarded as an independent contractor.
As for teachers working at schools and universities it is much less, between 1.45%~2% of your salary...

Can anyone confirm this...
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georgewallas



Joined: 26 Nov 2007

PostPosted: Wed Jan 16, 2008 6:40 am    Post subject: National Tax Service Phone advice Reply with quote

Nonsense, which is what, from my experience, you'll hear often from the NTS phone help line.
As I understand it [I am an E2], E1's are tax exempt for 2 years, so are those under the various EPIK's. Go to the Withholding calculator on the NTS site to get your approximate withholding, and figure the percentage on a calculator. There's also a list of tax exempt schools, either there or on the Board of Ed site.


Last edited by georgewallas on Sun Jan 20, 2008 4:28 pm; edited 1 time in total
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phoenixstorm



Joined: 06 Mar 2007
Location: Seoul, South Korea

PostPosted: Thu Jan 17, 2008 6:50 pm    Post subject: Reply with quote

If your first month of work was April 2007 do you still out the form as if you were working a full 12 months since I won't be here to collect the jan, feb, mar months I will be working in 2008?
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eliross



Joined: 14 Jun 2007

PostPosted: Sun Jan 20, 2008 3:02 pm    Post subject: Reply with quote

Has anyone received a tax refund after they left Korea?
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georgewallas



Joined: 26 Nov 2007

PostPosted: Sun Jan 20, 2008 7:47 pm    Post subject: tax refund from abroad Reply with quote

eliross wrote:
Has anyone received a tax refund after they left Korea?


Go to the "taxes 101" post on page 3 of this sticky.
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cdninkorea



Joined: 27 Jan 2006
Location: Seoul

PostPosted: Mon Jan 21, 2008 3:19 am    Post subject: Reply with quote

I'm completely overwhelmed. I've had 4 legal employers over the past year (part time stuff) and didn't even get paystubs from two of them. Of the other two, I don't have the paystubs anymore.
I don't know what the hell I'm doing and need professional help. Does anyone know if it's possible to hire an English-speaking accountant? How much would that cost and where would I find one?
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Young FRANKenstein



Joined: 02 Oct 2006
Location: Castle Frankenstein (that's FRONKensteen)

PostPosted: Tue Jan 22, 2008 12:53 am    Post subject: Reply with quote

Gunther wrote:
and the Tax rate for teachers at private academy's is 3.3%, because you are regarded as an independent contractor..

Complete nonsense. You are an employee of the school. There is NOTHING independant about an E2 visa.
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Flash Ipanema



Joined: 29 Sep 2006
Location: Seoul

PostPosted: Mon Jan 28, 2008 5:43 pm    Post subject: Reply with quote

Gunther wrote:
Just spoke to the guy at the National Tax Service... and the Tax rate for teachers at private academy's is 3.3%, because you are regarded as an independent contractor.


I asked my (private academy) school about my taxes last week and their response was no foreign teacher has ever asked about or gotten a tax refund before. Awesome. That means I know more about Korean tax law than they do.

Yesterday they told me that because I'm considered an "independent contractor" I may end up owing money if I file instead of getting it refunded. Other than pointing him to the NTS website, is there any way to show these people how to do my taxes properly? And where does it explicitly say that E2s can't be independent contractors since apparently the NTS people don't know that either?

Edit: They said it's because I'm paying a business tax, not an income tax, and that all teachers - Korean and native - pay the same tax. Which means no refund and I'll end up owing 700k if I have them go ahead and file.
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KoreanAmbition



Joined: 03 Feb 2008

PostPosted: Sun Feb 10, 2008 10:16 pm    Post subject: Reply with quote

Question:

I'm a Canadian, and might be working for a private academy.

Seems that on the calculator I have to click the choice that I will get 30% deducted for being a foreign teacher.

Do I get any of that back? I saw someone up above say that we only lose 3.3%.

Which is it?


Second, can a Canadian tell me how I will get taxed in Canada, if I will have to do that.

It seems that if I'm going to get taxed 30% from a private institution, then there's no need to work at it for a higher salary because actually tons of it won't even get into my pocket. Sad

Thanks for answers on this.
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georgewallas



Joined: 26 Nov 2007

PostPosted: Mon Feb 11, 2008 2:19 am    Post subject: Reply with quote

Flash Ipanema wrote:
Gunther wrote:
Just spoke to the guy at the National Tax Service... and the Tax rate for teachers at private academy's is 3.3%, because you are regarded as an independent contractor.


That's a load. You're an employee. As usual, the NTS "help" line is talking out of their hind side. I really wish they had competent or at least knowledgable people, instead of making minimal knowledge of English the standard.


I asked my (private academy) school about my taxes last week and their response was no foreign teacher has ever asked about or gotten a tax refund before. Awesome. That means I know more about Korean tax law than they do.

Yesterday they told me that because I'm considered an "independent contractor" I may end up owing money if I file instead of getting it refunded. Other than pointing him to the NTS website, is there any way to show these people how to do my taxes properly? And where does it explicitly say that E2s can't be independent contractors since apparently the NTS people don't know that either?

Edit: They said it's because I'm paying a business tax, not an income tax, and that all teachers - Korean and native - pay the same tax. Which means no refund and I'll end up owing 700k if I have them go ahead and file.


Again, you're believing the wrong man. What he's saying is not true. If he withheld money, he must either refund it on the first salary, or transfer it all to the tax office by Feb 28th. Period.
Let him talk, on the 1st of March call to find out if he even registered you, then in May file, using your pay stubs, and let them go after him.


Last edited by georgewallas on Mon Feb 11, 2008 11:46 am; edited 1 time in total
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Ut videam



Joined: 07 Dec 2007
Location: Pocheon-si, Gyeonggi-do

PostPosted: Mon Feb 11, 2008 7:31 am    Post subject: Reply with quote

KoreanAmbition wrote:
Question:

I'm a Canadian, and might be working for a private academy.

Seems that on the calculator I have to click the choice that I will get 30% deducted for being a foreign teacher.

Do I get any of that back? I saw someone up above say that we only lose 3.3%.

Which is it?


Second, can a Canadian tell me how I will get taxed in Canada, if I will have to do that.

It seems that if I'm going to get taxed 30% from a private institution, then there's no need to work at it for a higher salary because actually tons of it won't even get into my pocket. Sad

Thanks for answers on this.

Nah, you've got it entirely backwards. The 30% is not tax, it's a personal exemption. 30% of foreigners' income is exempt from taxation, so your tax is calculated as a percentage of the remaining 70%.
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georgewallas



Joined: 26 Nov 2007

PostPosted: Mon Feb 11, 2008 12:11 pm    Post subject: Tax exemption Reply with quote

I haven't a clue how you got the impression it's a liability.

Based on a back of an envelope calculation, with the aformentioned 30% exemption, as well as the deductable [and mandatory] pension and health contribution.

Each additional 100k a month to your salary, will adds 68, 400 KRW to your annual tax liability, regardless of income bracket.

That's before you calculate the other deductions, like 5M+50% for salary income, and, and...
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Suwoner10



Joined: 10 Dec 2007

PostPosted: Wed Feb 13, 2008 11:12 am    Post subject: Reply with quote

phoenixstorm wrote:
If your first month of work was April 2007 do you still out the form as if you were working a full 12 months since I won't be here to collect the jan, feb, mar months I will be working in 2008?


Ditto. ONly 1/12 of us start Jan. 1st. How do you file if you're an August 1 hire?
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Meggiebea



Joined: 20 Oct 2006
Location: Uijeongbu, South Korea

PostPosted: Wed Feb 27, 2008 3:23 am    Post subject: Reply with quote

OK so I've been asking for 24-1 slip for a couple of weeks and here are some of the answers the school gave me:

we don't know what you're talking about

you don't need this form

we've never given this form to a teacher before

your taxes are different because we forgot to tax you for your FREE apartment

You can't get a tax return

You can only file for a return if you're worked in Korea for 5 years

it will take a few months to get the form processed

blah blah blah

I basically told them: listen, one of three things is happening here, either you give me my slip and we're all happy, or you are not paying my taxes and stealing from me in which case i want ALL of it back, or you are keeping my tax return. If i don't get my slip i'm making some phone calls... but if i don't have answers soon i'm calling the tax office, what you are doing is illegal and EVERY teacher on this staff needs to know it. I handed her a paper with the tax office English phone number and immigration help line and told her i'm calling tomorrow.

What is my next step? I did the calculation and I'm owed 1,400,000 won tax return, but the school is giving me a total run around.

Do I have to worry about this being resolved soon or can it wait a few weeks?
How long does it take them to get the form ready for me?
When do i have to file by?

I'm getting pretty irritated and I don't really know each step i have to take to get my money back or how to resolve this.

Any help would be great.
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georgewallas



Joined: 26 Nov 2007

PostPosted: Thu Feb 28, 2008 1:02 pm    Post subject: Fact, what to do Reply with quote

Let's state a fact:
You're being llied to, and the hogwan is pocketing your tax money.

Wait till Monday, go to the District Tax Office, register to get a bank transfer [can't remember the name of the form], get a residence certificate.

Then ask if you're registered as a tax payer, which of course you will not be, and for the amount of money that was withheld in your name.

They'll claim they can't know yet, blasi bla. At which point you produce the stubs, contract, ARC, and a letter of complaint, and ask to speak with the investigations department. In the complaint make a simple case - "The hogwan is refusing to give me the forms." Put the dates in, and what was said.

Investigations take 2 months, which is very convenient, because, on May 1st you can file your own return, since you're already on record, you will have your money returned to you, in full, in May.

If you're abroad [I'm going to Thailand next week], make certain to register to the HTS, and make certain that they have the form for money transfers, then set up a bank account with either an international ATM card, or both a regular and remitance KEB account - that way you can get
the money out of the country.

GL
Twisted Evil
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