View previous topic :: View next topic |
Author |
Message |
mej
Joined: 22 Jan 2003
|
Posted: Sun Mar 30, 2003 11:48 pm Post subject: 12 % tax on my final salary? |
|
|
I finish my 1 year contract tommorrow and have been told to expect 450,000 tax deductions , does this sound right? It works out at 12% tax.
I earn 1.9 per month + my severence (1.9) = 3.8 less 12% tax (450,000).
P.s. I'm in Masan (near Busan) incase that makes a difference.
Thanks for your time. |
|
Back to top |
|
|
Harvard Material
Joined: 25 Feb 2003 Location: Seoul
|
Posted: Mon Mar 31, 2003 12:04 am Post subject: Tax sham... |
|
|
No; it is far from right Mej. Go to www.hagwonreport.com and scroll to the bottom of the Legal page. There you will find a Mr. Kim's number and e-mail - Korean Taxation. Send a message and also make sure you look at the instructions to calculate your taxes per month. Should be about 30,000 on 1.9 million won.
When you start finding mistakes keep digging. Get as much dirt as you can on this dog and get your money in hand. I wouldn't leave until you get it straight. Have you kept all your paystubs? There is no reason for a 9% jump on the way out...other than to get some of your pay out of you. |
|
Back to top |
|
|
Anda
Joined: 16 Jan 2003 Location: South Korea
|
Posted: Mon Mar 31, 2003 2:16 am Post subject: Um |
|
|
You are being done. Besides the above place you can go to the following site. http://efl-law.com/faqanswers.htm They will answer a email question!
Tell your boss that you have contacted two legal services and to expect some calls and then watch him back peddle. Also tell him that you are informing immigration of what he is about to do to you and that you are having to contact a legal service. If you inform immigration they will stop him from employing another foreign teacher untill he adjusts to the proper tax rate. Also tell him that you are seeking advise on the matter from the local tax office. There is one in all the cities of any size here. Tell him the above politely and that you will get a visa extension untill the matter is fixed. |
|
Back to top |
|
|
eamo
Joined: 08 Mar 2003 Location: Shepherd's Bush, 1964.
|
Posted: Mon Mar 31, 2003 5:16 am Post subject: |
|
|
I'm afraid that might be about right. Yes, the tax on 1.9 mill is 30,000 something. But, your hogwan, like mine, is adding your severance to your final pay which puts you at 3.8 for 1 months pay. This puts you in a far higher than normal tax bracket. So, it's not just double the normal but several times the normal. This is indeed how the Korean tax system works.
However, are they actually going to pay that to the Korean tax office on your behalf? It would be very easy for them to only declare your normal pay and not mention the severance.
My Hogwon showed me a tax-calculation sheet they insist is from the tax office. My final pay should be 4mill gross. On the print-out this came to 355,000 tax.
Personally, I just don't believe them. So, I've insisted on a tax-paid receipt within 30 days from the end of my contract. That's my right by law. Keep all your pay-slips. If you take the trouble you can prove that your hogwan was cheating you. |
|
Back to top |
|
|
Captain Obvious 2.0
Joined: 09 Jan 2003
|
Posted: Mon Mar 31, 2003 3:05 pm Post subject: |
|
|
eamo wrote: |
Yes, the tax on 1.9 mill is 30,000 something. But, your hogwan, like mine, is adding your severance to your final pay which puts you at 3.8 for 1 months pay. This puts you in a far higher than normal tax bracket. So, it's not just double the normal but several times the normal. This is indeed how the Korean tax system works. |
This is the correct answer. |
|
Back to top |
|
|
Confused Canadian
Joined: 21 Jan 2003
|
Posted: Mon Mar 31, 2003 4:21 pm Post subject: |
|
|
You can go to the Korean Tax Calculation page at:
http://www.nts.go.kr/menu/index.asp?sub=menu5&svc=5_6&sub_menu=menu1&svc_id=743
If you enter 3800 (the last three 0's are not necessary), it will show you that the correct amount of tax for 3,800,000 won is:
301,010 won
So, you should not be paying 450,000 won in tax on your final pay, however...if those deductions include National Pension and Medical Insurance, then it may be spot on. If it's just tax, you're getting reamed. |
|
Back to top |
|
|
Zyzyfer
Joined: 29 Jan 2003 Location: who, what, where, when, why, how?
|
Posted: Mon Mar 31, 2003 6:09 pm Post subject: |
|
|
I'm gonna fourth that tax hike point. Happened to me, really sucks, but if they combine your severance and final paycheck together, it happens.
You could get wise and ask for them to be paid separately, but this might seem rather frugal to your boss. |
|
Back to top |
|
|
poet13
Joined: 22 Jan 2006 Location: Just over there....throwing lemons.
|
Posted: Sun Feb 05, 2006 8:37 pm Post subject: |
|
|
hello
i've tried to access hagwonreport.com a few times and it directs me to "you better search" ....can someone send along an alternate to that? i'm nearing the end of my contract, and have dealt with follish money games for more than eleven months. sat down last week with my boss and she talked piles and piles of nonsense, expecting to lose major parts of salary and severance on completion. I cant even get a straight answer from her when i told her i needed my tax receipt (per contract). much appreciate any links, advice any may have to offer.
poet |
|
Back to top |
|
|
poet13
Joined: 22 Jan 2006 Location: Just over there....throwing lemons.
|
Posted: Fri Feb 10, 2006 8:22 pm Post subject: |
|
|
damn! another post 3 years late! |
|
Back to top |
|
|
chiaa
Joined: 23 Aug 2003
|
Posted: Fri Feb 10, 2006 10:50 pm Post subject: |
|
|
I have no point of reference, but I wasnt to say that the severance pay is not taxed (or it is not taxed the same way as salary).
Call the tax office directly. |
|
Back to top |
|
|
mumblebee
Joined: 26 Jun 2004 Location: Andong
|
Posted: Mon Apr 17, 2006 3:36 am Post subject: |
|
|
My school pays people their severence one month after they leave to get around that tax hike. If you can trust your school, ask them to do the same. |
|
Back to top |
|
|
IwalkAlone
Joined: 30 Nov 2005 Location: Daegu
|
Posted: Wed Apr 19, 2006 2:57 am Post subject: |
|
|
mumblebee wrote: |
My school pays people their severence one month after they leave to get around that tax hike. If you can trust your school, ask them to do the same. |
That tax hike is an urban legend...
Knowing the tax system would tell you that severance is not taxed as income tax. Severance has it's own system of taxation which goes something like this.
First 300,000 is tax exempt and the remainder is taxed at 9%. This was for 2004 tax year so it may have changed some for 2005 filing period. |
|
Back to top |
|
|
semphoon
Joined: 18 Nov 2005 Location: Where Nowon is
|
Posted: Wed Jan 24, 2007 3:31 pm Post subject: |
|
|
Confused Canadian wrote: |
You can go to the Korean Tax Calculation page at:
http://www.nts.go.kr/menu/index.asp?sub=menu5&svc=5_6&sub_menu=menu1&svc_id=743
If you enter 3800 (the last three 0's are not necessary), it will show you that the correct amount of tax for 3,800,000 won is:
301,010 won
So, you should not be paying 450,000 won in tax on your final pay, however...if those deductions include National Pension and Medical Insurance, then it may be spot on. If it's just tax, you're getting reamed. |
That tax calculation page is now gone.
Can anyone please point me towards the new tax calculation page? |
|
Back to top |
|
|
dogshed
Joined: 28 Apr 2006
|
|
Back to top |
|
|
|