Korean Job Discussion Forums

[Dr.Floyd]

Hello,

I've done a lot of searching about this and there doesn't seem to be very much easily accessible information about it.

I'm wondering what the best way to deal with taxes is for a resident of the U.S.
Should I get a Residency Certificate and be excluded from paying Korean tax? Or is it better to pay korean tax and then deduct it from my U.S. taxes? OR does it all end up being the same with either method?

I'm sure lots of people have this same question. So hopefully this will be a good post

Thanks

[LarrytheGiraffee]

As a US citizen working in Korea, we are allowed to make up to $80,000 a year and not pay taxesback home as long as we are paying taxes in Korea. We pay far less in Korea then we would in the states, so its my opinion that you pay should pay taxes here rather than getting the Residency Certificate. Just like Koreas, we are able to file for a tax refund at the end of the year. As long as your school is really paying the government the full amount they are deducting from your pay, you should get a bit of a refund.

[Dr.Floyd]

Thanks thats the information i was after.

[dogshed]

[dogshed]

http://forums.eslcafe.com/korea/viewtopic.php?t=87567&highlight=tax+exclusion

Declaring that you are not a resident of Korea means that you will not pass the Bona Fide Resident test, but you can still pass the physical presence test.