Korean Job Discussion Forums

[oldfatfarang]

My Public school wants me to get a "Residency Certificate" from the Inland Revenue. Apparently, if I provide this certificate I will be exempt from paying orean income tax for 2 years (yippie!).

I need info from Kiwis who've got this certificate and how they got it.
Thanks.

PS. I previously taught in a hagwon for 2 years. I paid Korean income tax for 2 years, but my hagwon hasn't paid my full 2 year's tax to the Korean Tax Office. Also, I haven't given the Korean Tax Office a NZ Tax Residency Certificate for my previous 2 years teaching.

Any help appreciated.

[kiwikid]

I didn't need to provide anything. I made the school aware of the exemption and got them to look it up on the website and apply for it. I had no problems getting the exemption.

[oldfatfarang]

Hi Kiwikid,
What's thewebsite / address . ??? My school has said they will be deducting tax until I can provide the certificate.

[kiwiliz]

I also didn't need one, the office just looked at my home adress and exempted me.
Sorry, can't help you

[Rapacious Mr. Batstove]

Hey bro

Kiwis are exempt automatically from paying tax for their first two years - you don't need to show a residency certificate.

All this information is on the Korean tax websites that your teachers should be able to find - sorry, I can't tell you the link.

Put your foot down on this

[judge-ing-na]

Hey all,

I think you should be careful. I would strongly advise you to file for non-resident status with the IRD bloodsuckers. They can and probably will take their cut of your income (at NZ rates) when you return home, especially if you have some good coin in the bank.

3.3% in korea is way way way better than the nz rate.
If you pay tax in korea they cannot touch your money because there is a law against double taxtation.

[oldfatfarang]

Thanks for the tips on non-residence status. I never thought of that.
Imagine going home and then getting taxed again after years of cheap tax in Korea.
Perhaps I should just shut up and let the K's tax me at 3.3%.
I don't want to make too many waves. I haven't paid Korean pension for the last 2 years so I'd hate to get lumbered with a back bill for that as well.

Any more comments appreciated.

[xtchr]

I went through this a few years back. I was told by the IRD that I must pay tax in one country, either Korea or NZ, so I chose to pay the low rate here, rather than pay nothing and then get taxed at a much higher rate on my earnings when I returned to NZ. They also said that there was no such thing as a 'certificate of Residency'.

I had to fill out a form from the IRD to become a non-resident (for tax purposes) - at the time it was an IR886, but it may have changed since. All the forms should be available to download from their website, but I went and did it all at an IRD office while I was still in NZ.

To get Non-resident status I had to prove that I had no substantial social or financial ties to NZ, i.e not owning a house, no dependent children etc, (and other things, but I can't remember now).

It took a while for them to process it, and then I received a letter saying the following;

IRD NO:########
Our Ref:####
I refer to the IR886 New Zealand tax residence questionnaire dated @#@# 2004.
I confirm that, on the basis of the information provided, you are deemed to be a non-resident for New Zealand income tax purposes from your date of departure #@#@# 2004.
Yours sincerely
@#@#
IRD


Hope this helps.

[willneverteachagain]

i didnt pay canadian or korean taxes

[darkhorse_NZ]

cool is this for real?

so can I just assume that everything's cool beacuse of my NZ home address supplied to my school or should I get my co-teacher to sort it on the Korean IRD website?

plus my co-teacher's English is very poor and he's not very helpful