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bobbybigfoot
Joined: 05 May 2007
Location: Seoul
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 Posted: Sat May 12, 2007 2:47 pm Post subject: Tax problem solved (why 3.3% is shown all the time) |
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Hi,
I have been reading many posts which advise people to go to http://www.nts.go.kr/eng/default.html
to find out the proper withholding tax. And then people are typing in 2200 (representing 2.2 million, for example) and seeing the tax at 39000 won. So then they are screaming up and down that they are being ripped off.
Let me offer my explanation.
The employers are taxing you on your apartment too. This, in canada anyhow, is called a "taxable benefit". So if you add 2.2 million plus say 350,000 for your apartment, then really you are getting a salary of 2.55 million. Now try typing in that number (2550) into the NTS website. You will notice the taxable amount is around 79000 won, which is approximately what people are being taxed.
I am not 100% certain of this, but I would bet the farm on it. |
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The_Conservative
Joined: 15 Mar 2007
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| Posted: Sat May 12, 2007 3:53 pm Post subject: Re: Tax problem solved (why 3.3% is shown all the time) |
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| bobbybigfoot wrote: |
Hi,
I have been reading many posts which advise people to go to http://www.nts.go.kr/eng/default.html
to find out the proper withholding tax. And then people are typing in 2200 (representing 2.2 million, for example) and seeing the tax at 39000 won. So then they are screaming up and down that they are being ripped off.
Let me offer my explanation.
The employers are taxing you on your apartment too. This, in canada anyhow, is called a "taxable benefit". So if you add 2.2 million plus say 350,000 for your apartment, then really you are getting a salary of 2.55 million. Now try typing in that number (2550) into the NTS website. You will notice the taxable amount is around 79000 won, which is approximately what people are being taxed.
I am not 100% certain of this, but I would bet the farm on it. |
No. That is incorrect
I am being taxed around the 3 % mark. If I were being taxed on my apartment I would be paying more than twice as much. Canada's tax laws do not apply here in Korea.
And not everybody's apartment is worth 350,000 won in tax anyways.
And if that were true, people could not go back to their employer and say "hey you are taxing me too much." and get their taxes reduced. |
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bobbybigfoot
Joined: 05 May 2007
Location: Seoul
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| Posted: Sat May 12, 2007 8:16 pm Post subject: |
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well i was hoping i was right. Would help explain alot of the confusion. I guess then the only explanation is that Korean Hogwan owners are just thieves. And their government doesn't seem to mind.
so if so many foreigners get ripped off and disrespected, then why do so many still go?
I just had a recruiter tell me the 3.3% is law. I guess he too is involved in this circus ring.
As a fair warning to others, ESL Planet tried to push 3.3% income tax with me. Told me it was the law. |
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Roch
Joined: 24 Apr 2003
Location: Seoul
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| Posted: Sat May 12, 2007 8:22 pm Post subject: |
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| bobbybigfoot wrote: |
well i was hoping i was right. Would help explain alot of the confusion. I guess then the only explanation is that Korean Hogwan owners are just thieves. And their government doesn't seem to mind.
so if so many foreigners get ripped off and disrespected, then why do so many still go?
I just had a recruiter tell me the 3.3% is law. I guess he too is involved in this circus ring.
As a fair warning to others, ESL Planet tried to push 3.3% income tax with me. Told me it was the law. |
Based on Roch's experiences with them, he's not surprised at all. |
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Jellypah
Joined: 27 Oct 2004
Location: ROK
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| Posted: Sat May 12, 2007 10:01 pm Post subject: |
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| I believe 3.3% is the rate for an "independant contractor," which you're not if you're employed on an E-2 visa. But bosses will charge it. My boss is charging me 5% and paying nothing in my name to the Tax Man. |
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BigBuds
Joined: 15 Sep 2005
Location: Changwon
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| Posted: Sat May 12, 2007 11:09 pm Post subject: |
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| Jellypah wrote: |
| I believe 3.3% is the rate for an "independant contractor," which you're not if you're employed on an E-2 visa. But bosses will charge it. My boss is charging me 5% and paying nothing in my name to the Tax Man. |
The 3.3 % tax rate is for an "independant contractor" which, up until about a year or so ago, was what English teachers in Korea were classified as by the tax department. English teachers are now classified as salaried workers the same as Koreans are so our tax rates are now less. |
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Squid
Joined: 25 Jul 2003
Location: Sunny Anyang
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bobbybigfoot
Joined: 05 May 2007
Location: Seoul
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| Posted: Sun May 13, 2007 6:38 am Post subject: |
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Thanks for the replies and setting me straight....
I never would have imagined just how crooked the English industry is in South Korea.
With my odds of finding a decent hogwan being at about 10%, I think I'll go Public. |
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BigBuds
Joined: 15 Sep 2005
Location: Changwon
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| Posted: Sun May 13, 2007 7:03 am Post subject: |
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| One of the problems here in Korea is when these changes are made no one is notified of them so many places of business still think things haven't changed hence 3.3% tax still being very preverlent in contracts. |
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bobbybigfoot
Joined: 05 May 2007
Location: Seoul
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| Posted: Sun May 13, 2007 8:33 am Post subject: |
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But for recruiters not to know?
What excuses do they have? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Sun May 13, 2007 2:20 pm Post subject: |
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| bobbybigfoot wrote: |
But for recruiters not to know?
What excuses do they have? |
The biggest one - they are just the introduction service.
They are NOT:
=The employer,
=Your babysitter,
=Your friend,
=Concerned about your well being (after they are paid),
=Able to do anything when you have problems.
They ARE:
=An inttroduction service,
=Occasionally a translator between the teacher and employer to facilitate and expidite the signing of the contract.
=Sometimes knowledgable about immigration rules and may assist you in your visa application because if you don't get here - they don't get paid. |
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