Korean Job Discussion Forums

moredhel_1 · Joined: 20 Feb 2006

Hey there! Ok, I've read on several posts now, especially the ones by "ttompatz", that the current rate of taxation for foreigners working in hogwans (perhaps its public schools too) seems to be something incredibly low like 1%, or 1.3%, or 1.6%, as opposed to the often quoted 3 - 5% taxation rate that's listed on many a sample contract, etc. Is there anyone out there that can actually verify which amount is correct, and why? I'm looking for hard evidence, like an official Korean website, something from the Ministry of Education, Pension office, ANYTHING that isn't just "hear-say". I'm curious to know, as this seems like quite a difference in money being deducted, and I want to know which one is official, so I can be sure not to be "screwed" in a contract.

If anyone, including "ttompatz", can enlighten me and others on this topic, I'd be very grateful. I've already lived and taught in Korea once, but my wife and I paid somewhere in the 3 - 6% tax range (one year ago), so I hope we didn't lose too much money. Thanks!

ontheway · Posted: Wed Apr 18, 2007 11:39 am Post subject:

Taxes in Korea are progressive. Your tax rate could be 1.6% or 6% anything up to 35%. It depends on your income. You (and your school) should use this site to find your withholding. Go to the withholding calculator to get the correct monthly withholding amount. You should NOT put a percentage rate in your contract. Your withholding amount should be the won amount determined by the calculator. Type in the amount of your monthly income (omit 000 according to the site instructions).

http://www.nts.go.kr/eng/default.html

Young FRANKenstein · Posted: Wed Apr 18, 2007 2:30 pm Post subject:

It is also determined on your participation in Health and Pension schemes. If you don't pay into either of them, taxes will be higher. The lower tax rates assume you pay into both.

pkang0202 · Joined: 09 Mar 2007

Mine should be half that stated on the GEPIK contract. I sent an e-mail to Wenise Kim regarding this. I'll update this thread with her reply.

UPDATE: From Wenise Kim:

You need not worry about it until you reach your 3rd working years in Korea. The 1st two years applies no tax.

I will follow up on this anyways.

-Wenise Kim