Korean Job Discussion Forums

[moredhel_1]

Hey there - anyone out there heard of this, or know anything about the following?

I'm dealing w/a very reputable, stand-up school. They know that my taxation rate, on a salary of 2.1, should be exactly 1.6%. However, the manager told me that that only kicks in after I have my ARC; before then, I'll be at 3.3%.

Now, it probably won't be that long of a time anyway, but does anyone know where I can find some verbiage refuting or supporting this? I've viewed the Korean Tax Website, and can't find anything about the tax rate changing once an expat has his/her ARC. The way I read it, simply being a teacher makes you an employee, and being an employee allows you to be taxed at the correct rate, and has nothing to do w/when you get your ARC or not. But I could definitely be wrong here, I just want to read it for myself.

Anyway know about this?

[Tokki1]

1.6%???????

Is that with NHIC and pension?

WTF I've always paid over 3%.

These tax-related forums are driving me insane. I suppose you used the 'Korean income tax calculator' online?

I simply don't understand this. I've seen the payslips of all employees and I've never seen income tax that low. There would be no benefit for the school to overtax unless they were pocketing it. I don't get it.

Has income tax dropped? If not, I'm in for one whopping refund.

Does anyone actually file taxes in Korea?

[moredhel_1]

[alabamaman]

http://www.efl-law.com/forum/viewtopic.php?t=1249&sid=94fd8dbeb61195f2b301b0a60b6bb43c

Income tax

Each month, tax should be deducted from the Employee�s monthly salary for income tax in accordance with Korean law. This can be calculated on the Korean government tax website (Korean: http://www.nts.go.kr /English: http://www.nts.go.kr/eng/default.html) and is different for different salaries. Just go to the monthly withholding tax calculator to work it out. Residence tax should also be added to this and is 10% of your tax rate (Example: W30,000 income tax per month would be W3,000 residence tax per month, total tax per month = W33,000). These are the current rates and monthly payment amounts:

Salary per Month Tax Rate Income Tax Payment per month Including 10% residence tax
2,000,000 1.60% 31,850
2,100,000 1.76% 36,780
2,200,000 1.99% 43,780
2,300,000 2.36% 54,270
2,400,000 2.67% 64,680
2,500,000 3.12% 77,880

Your boss is more than likely pocketing money. ARC has no bearing on the amount deducted for tax.

[Tokki1]

Well this is new.

First I've ever heard of it. And I moved to Korea in 2001.

Somebody owes me money.

Good to keep in mind for my next gig in July.

Have you ever filed taxes in Korea or been asked to? I never have.

[ttompatz]

[moredhel_1]

[ttompatz]

[bobbybigfoot]

You are in a pickle buddy.

Now you know that your boss is a lying conman.

What else does he have up his sleeve?

Please post the school name so we can be aware.

[yingwenlaoshi]

Your ARC is just a card. I assume you have your E2 visa in your passport. If not, they shouldn't be taxing you at all because you shouldn't be working. I you're just waiting for the card then that's all it is. You should be taxed as a foreign worker on an E2. That's it. What are they going to do? Figure out the amount of days it took for it to be issued and figure out your daily salary and multiply it by those days? Then tax you the 3.3 for those days? Then...?

Come on.

What people don't get on this board is that the employer can tax you 3 or 3.3% if they feel like it. What they shouldn't do is keep that money and not forward it all to the tax office. That's where the problem is.

Yes, you should be looking at the amount on NTS's website to avoid getting screwed. Yes. But the employer doesn't have to tax you exactly that. They can overtax you. Just better make sure those taxes are being paid.

[yingwenlaoshi]

[jellobean]

Get a payslip which states specifically how much was taken out for income tax. Then don't worry about it. File your taxes and get the money back. If your payslip doesn't match the amount give to the tax office, your employer is in trouble. Just make sure the payslip is in Korean or Koran and English.... Oh, and check the Korean if there is no English.... My legit payslips have always been in Korean...

[yingwenlaoshi]