Korean Job Discussion Forums

[Johnmkr]

I was wondering if there are any Aussie residents out there who know how to pay their tax in Australia INSTEAD of Korea. I believe the rules are about to change between Australia and Korea. It�s all very confusing.
I would like to receive my salary before tax if possible. What is an Australian �Residency Certificate� and how do I get one? Also, how can I get my Korean �Pension� in lump sum?
I am employed at a public middle school by a Local Government Office of Education here.
Any advice appreciated.
Thanks

[sadsac]

Depending on how long you have been here will affect your tax back home. You should pay your tax in Korea. If you do not then you will be slugged the full Australian tax rate when you file in Australia. You can be a non-resident for tax purposes and a resident for all else. Pension, no agreement with South Korea yet. One will be coming into effect in 2008, but at the moment you cannot receive your pension when you leave, it stays here. All the best with trying to unravel the ATO site.

[joeyjoejoe]

good luck figuring out the ATO site.
my lovely mother has been to the ATO on my behalf four times in the last few weeks (bless her) to find out what the deal is.
each time she has spoken with successively higher ranking officers.
she is yet to get a straight answer. they've all just read through the rules on the site and given their opinion, no one seems to actually know.

why do you want to pay tax in australia? around 30% instead of 2 or 3% here.

i filed as a non-resident, and paid no tax on the 5k or so income i had from home.

you can claim the pension refund, i think, in june next year. that's when the new agreement starts. it will apply to payments already made.

[icicle]

[deadman]

Just a note on Australian residency and tax, for the record.

I'm currently in Oz, and looked up "residency" in "2007&2008 Tax Summary" by Tony Greco, CEO Taxpayers Australia Inc.

It says:

"Residency and source of income are the two principal criteria for determining an entity's liability to Australian tax. A resident of Australia is liable to pay tax on all of their world wide income regardless of whether it is derived from in or out of Australia.... By contrast, a non resident is limited to Australian tax on income derived only from Australian sources."

For an individual:
"The term resident of Australia is defined in s.6(1) and basically means a person who resides in Australia and -
1. whose domicile is in Australia...
2. who has (lived in Oz for more than half of the year)...
3. anyone eligible to join the Commonwealth Superannuation Fund, or is a member"

Further notes on the above tests

1. Domicile = permanent place of abode. "You remain a resident of Australia unless you adopt a permanant place of abode outside Australia. Travelling abroad even on an extended holiday will not affect your residency status".
Two examples are given.
a. A man set up an office in Vanuatu, gave up his lease in Oz, left no assets, returned 21 months later, was held to be a non resident for that time.
b. A woman had travelled for 5 years working as a physiotherapist but was "held to be domiciled in Australia because she had not done anything to abandon it"

3. Basically applies to Commonwealth (gov't) employees on overseas postings.


Note: "Non-residents are taxed on all of their other Australian Income because they are not entitled to a tax free threshold"



Not all relevant to working in Korea, and I don't know about the double tax agreement, but I took it all to mean I don't need to do anything back home, just pay whatever tax I need to here.

[icicle]

For the record ... and in case anyone does rely upon it .. I would suggest that anyone who really wants to know what the position is ... for them ... does more than read a summary article ... as the previous poster did ...

Residency is recognised as one of the most complex areas of the Tax Law ... And what the previous poster has said has literally only touched the surface of the issue ...

If you want a reliable source of information ... I would suggest looking on the ATO's own website ... and reading the Public Rulings on Residency ...

OR even better ... ask for a Private Ruling ... Because in the final analysis it does depend upon your individual circumstances ... And it is a very expernsive matter if when you get back to Australia you find that you need to pay tax (at 30% or so) on your Korean Income ...

[Norith]

Not an aussie...but, the pension agreement should come into effect around August. It's retroactive, so anything that you've paid in will be returned to you.

[icicle]

[deadman]

[sadsac]

Was back home in July and fileD returns for the last five years. Paid Korean taxes and therefore did not have to pay tax on any income derived whilst working overseas, only on the interest from the money I have invested. Non-resident for tax purposes. If you maintain a residence or garner any income from rentals or such, you will be paying a shitload of tax to the ATO. I paid for my 5 years of returns just over $700.00. Get a good account, it's worth the money.

[garygoodbloke]

How do us Aussies apply to get our pension back?

Do we have to do anything before we leave? OR do we have to initiate proceedings from July this year.

My sentence is up in March and I need some guidance about how to go about this. Any help?

[dingo_man]

bump bump bump?

so we dont need a residency certificate? the ATO wont issue me this certificate and asked for me to get a private ruling :S

can some explain this for me further?

thanks

P