Korean Job Discussion Forums

[mediano tzu]

So we know that the tax rate your supposed to pay is about 1.5%. Knowing this, it's amazing to me that so many places in Korea want to withhold 3-5%. I don't know what this is called in Korea, but I'm pretty sure I grew up with the understanding that this sort of thing should be considered theft.

I'm sure that many on this board have withholdings that are more than what they're supposed to be. Is this sort of thing generally indicative of a corrupt hakwon owner, or is it just so standard a practice that it means even (relatively) honest directors will withhold a flat amount that is greater than the correct amount?

Also, have any of you ever brought it up after you realized you were being screwed out of a portion of your paycheck? If so, what happened?[/i]

[jellobean]

If you are considered a contract employee (rather than salaried), which many English teachers are, you're rate is 3.3% Anything higher than that is suspect. Demand a tax receipt and go down to the tax office and make sure your employer is actually giving your taxes to the government.

[mediano tzu]

I see . . .salaried, eh? I guess this link doesn't work for that: http://nts.go.kr/front/service/refer_cal/gani/refer_gani_eng.asp

[thaitom]

[quote="jellobean"]If you are considered a contract employee (rather than salaried), which many English teachers are, you're rate is 3.3% quote]


Please,please show me where this is written, I have searched everywhere on NTs.go.kr

[dmbfan]

Better yet, if you are an American or Canadian, you are not required to pay income tax during your first two years.


cheers

dmbfan

[TheDude]

You are correct about American citizens but Canadian citizens do have to pay income tax in Korea as the Korea-Canada tax agreement does not exclude canadian teachers from taxes.

Therefore a canadian teacher pays local income tax but not canadian income tax while he or she works in Korea (unless of course his or her tax situation in Canada allows for Revenue Canada to tax him or her).

[dmbfan]

[semphoon]

I worked at a place last year that took 5% in tax from me. Do I have any comeback against the hagwon or is my hard earned money now safely in my won-jang-neem's pocket?

[thaitom]

I still want to know where this 3.3% flat rate comes from. The only thing I have found is that a independent contractor is charged at 3%. flat rate.
Are E-2 visa holders actually considered independent contractors? If so National Health and Pension are not mandatory,Right??

[dmbfan]

[alabamaman]

EFL LAW

http://www.efl-law.com/tax.php

The second issue we can state clearly here is the calculation of monthly Income tax deductions if you do not fall into (a) above, and thus Simplified Tax Withholding will apply to Hagwon teachers and teachers in private industry. The monthly Simplified Tax Withholding deductions can be viewed here. Your deductions, pursuant to taxation regulations, are that for salary earners. The Income Taxation Commissioner advises that some school owners incorrectly deduct Taxation based upon a belief the teacher employee comes within the Business Income taxation deduction, which is a flat 3%.