Korean Job Discussion Forums

Intrepid · Joined: 13 May 2004 Location: Yongin

My first year on an F-2 and I have two legit jobs, both of which deduct 3.3% from my pay.
Am I really going to be paying 26% upon filing next year?
Tax info on the sticky is outdated. I found this:
http://www1.samil.com/publication/filemng.nsf/0/0DA49947F2B118E149257377003B57A2/$File/2007KoreanTaxSummaries.pdf
How to avoid owing something like 10 million? Go back to teaching privately?

slothrop · Joined: 03 Feb 2003

KOD · Joined: 19 Aug 2003

slothrop · Joined: 03 Feb 2003

KOD · Joined: 19 Aug 2003

Do you want tax advice from this guy and his "CPA" wife?

Intrepid · Joined: 13 May 2004 Location: Yongin

The link in my original post is from an American accounting firm doing business in Korea, so the 26% on income above a certain level is what I'm worried about. In this post I was just looking for someone who has gone through the process and can tell me more about it. I'd like to know about deductions, etc. It has been my impression after ten years in Korea that everyone avoids tax.

Heck, last year I owed 1.5 million on income from one job--3.3% is nothing, so, no, the employer definitely does not take care of it for you.

Intrepid · Joined: 13 May 2004 Location: Yongin

Yup, saw an accountant and beyond deductions etc. I'm going to owe upwards of 10,000,000. I won't vociferously complain, but I wish they'd been taking it out to begin with.

robot · Joined: 07 Mar 2006

Wow. Never heard of this.

It was a little confusing to read the pamphet -- basically if you earn over a certain amount they gouge you with 26-35% tax?

Mr. Pink · Joined: 21 Oct 2003 Location: China

jbpatlanta · Joined: 02 Jun 2007 Location: Daejeon

I have a F2 visa. My school deducts 3.3% tax from my salary. Right now I am filling out my tax forms to take to the tax office. I am looking at receiving 60 - 70% of the money I have paid into taxes back as a refund. There is no way you will be paying 26% taxes. Get your wife to call the tax office in your gu. She can also go to the tax website (The korean one) and download the forms. SHe then just needs to fill out the forms. My wife has called the tax office several times and they always help her.

Remember ou need all of your receipts. You need to show that you spent a certain percentage of your income to live. Your return is based on the amount of money you spent and how much money your paid in taxes.

robot · Joined: 07 Mar 2006

It looks like the pamphlet says if you make over 80,000,000 won/year you're looking at 26% tax -- and there may be some other charges as well; I couldn't understand that well.

Has anyone else encountered this? If true, this would be absolutely shocking -- one might as well just move back home where the tax rate isn't much worse.

Intrepid · Joined: 13 May 2004 Location: Yongin

Actually, the rate after 80 million is 38.5%.

tob55 · Joined: 29 Apr 2007

I just looked at the tax guide my wife (Korean) was kind enough to get from the Tax Office that is in English and Korean. As a foreigner living and working in Korea, it looks like your tax rate would come in between 8% - 17% including deductions. It is not as convoluted as it seems, but the information you are reading is quite confusing. I looked at the download in Foxfire, and it didn't make much sense to me either. So, I had my wife pull out the tax guide and she explained it to me. If you have any other questions send me a PM and I can get in touch with you if you want a phone number to speak with me.