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Paying income tax on my Housing

 
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reactionary



Joined: 22 Oct 2006
Location: korreia

PostPosted: Thu Jan 31, 2008 12:12 am    Post subject: Paying income tax on my Housing Reply with quote

I didn't choose my housing. In fact, it's a 6 pyung box and I don't like it very much - I accepted it because unlike the first hole I was put in, it didn't have broken glass all over the floor.

But my boss has decided to put my "rent" onto my paycheck this month (550,000 won) and told me to pay it directly to the budongsan. Whatever. But then i noticed my income tax, it's gone up from 50,000 won to 130,000 won. Pension, health, are the same.

I remember fighting them over this in the past and winning - said if you wanna count my housing as part of my salary, then they'd have to pay more in pension as well. Now they're trying to slip this on me again. "Income tax is calculated on all of your salary and benefits. pension is based on only your base salary!"

I don't consider it a housing allowance as I didn't REALLY pick the place - I bitched about my last garbage dump, then SETTLED for what they presented to me. I dont see why my income tax needs to more than double.

I mean my income tax is now well over 5% of my base salary and i really just think they are pocketing some on me. It's not a lot of money but as I don't do privates, it's significant to me.
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boyne11



Joined: 08 Jul 2007

PostPosted: Thu Jan 31, 2008 1:12 am    Post subject: Reply with quote

You're right in that when housing allowance is considered as your added income and is taxed at a highter bracket, your pension and medical should increase too.

Go to the NTS website and check your tax.

Tell your sly boss "No can do."
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the eye



Joined: 29 Jan 2004

PostPosted: Thu Jan 31, 2008 2:01 am    Post subject: Reply with quote

No.
According to the tax office, housing allowance is separate from base salary. It is classed as a taxable benefit, and subject to a different tax rate.

It does not affect you pension, or health insurance.

In Daegu, the taxable amount is listed at 400,000 per month. If memory serves, the tax rate was 4.5%, but i'm not positive on that because my school pays it anyway.

I'd be worried about the amount that your deductions have increased. Sounds like someone made an error, or you are being charged too much.
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Roch



Joined: 24 Apr 2003
Location: Seoul

PostPosted: Thu Jan 31, 2008 4:07 am    Post subject: Re: Paying income tax on my Housing Reply with quote

reactionary wrote:
I didn't choose my housing. In fact, it's a 6 pyung box and I don't like it very much - I accepted it because unlike the first hole I was put in, it didn't have broken glass all over the floor.

But my boss has decided to put my "rent" onto my paycheck this month (550,000 won) and told me to pay it directly to the budongsan. Whatever. But then i noticed my income tax, it's gone up from 50,000 won to 130,000 won. Pension, health, are the same.

I remember fighting them over this in the past and winning - said if you wanna count my housing as part of my salary, then they'd have to pay more in pension as well. Now they're trying to slip this on me again. "Income tax is calculated on all of your salary and benefits. pension is based on only your base salary!"

I don't consider it a housing allowance as I didn't REALLY pick the place - I *beep* about my last garbage dump, then SETTLED for what they presented to me. I dont see why my income tax needs to more than double.

I mean my income tax is now well over 5% of my base salary and i really just think they are pocketing some on me. It's not a lot of money but as I don't do privates, it's significant to me.


Your income tax should not be that high, your boss needs a stern lecturing from Ttompatz, et-al, and your shoebox-sized home is not taxable.

Your employer is either misinformed or ripping you off. Dude, I've been there so many times and can imagine the stress you likely feel at the moment.

Get on him right away by going to the labor and tax officials in your area if he/she does not knock off the silly business of keeping a significant portion of your monthly earnings after you tell him/her to cut it out, etc.

The National Tax Service has a web site in the English language. Please check it out, and then ask Ttompatz for advice. He's up on things here and is most sincere.

Best of luck, and please keep us informed!

Sincerely,

Rochie
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yingwenlaoshi



Joined: 12 Feb 2007
Location: ... location, location!

PostPosted: Thu Jan 31, 2008 4:24 am    Post subject: Reply with quote

the eye wrote:
No.
According to the tax office, housing allowance is separate from base salary. It is classed as a taxable benefit, and subject to a different tax rate.

It does not affect you pension, or health insurance.

In Daegu, the taxable amount is listed at 400,000 per month. If memory serves, the tax rate was 4.5%, but i'm not positive on that because my school pays it anyway.

I'd be worried about the amount that your deductions have increased. Sounds like someone made an error, or you are being charged too much.


The Korean government has their head so far up their arse that this local tax office probably made this up on the fly with a false interpretation of ambiguous, unclearly defined laws/tax codes.

I think, however there may be something in regards to up to a certain amount for housing isn't taxable. Over that amount is subject to a certain percentage of tax.

Anyway, that's neither here nor there in the OP's case. The amount, if it exits, is really quite negligible. Taxes increased from 50,000 to 130,000 is complete horsesh1t. This, if any, is a perfectly good reason to contact the tax office. Don't let your employer get away with it.
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reactionary



Joined: 22 Oct 2006
Location: korreia

PostPosted: Thu Jan 31, 2008 2:45 pm    Post subject: Reply with quote

well, that's the thing. if you punch it into the tax website, it is correct. 2.9 mill is taxed at a higher % than is 2.3. it pushes me into a higher tax bracket.

the thing is...I DIDN'T ASK FOR A HOUSING ALLOWANCE. This is housing they chose and gave to me. I didn't have to pay taxes on this last year, and I didn't until recently (once I forced them to pay my pension). It's a goddam claw-back technique and I'm tired of dealing with it. My only response is just to be a complete lazy sod at the work place and be completely unhelpful
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reactionary



Joined: 22 Oct 2006
Location: korreia

PostPosted: Thu Jan 31, 2008 2:52 pm    Post subject: Reply with quote

By the way, a nyone have the tax office number? The website (as seen in the sticky - http://nts.go.kr/) is a bunch of chicken scratches.
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georgewallas



Joined: 26 Nov 2007

PostPosted: Thu Jan 31, 2008 3:36 pm    Post subject: where to get the low down Reply with quote

reactionary wrote:
By the way, anyone have the tax office number? The website (as seen in the sticky - http://nts.go.kr/) is a bunch of chicken scratches.


If you type "tax Korea" into a Google [english] search, the top link is this: http://www.nta.go.kr/eng/default.html double click that, and then press the HELP link, and the numbers will show. They are not very good, so you may be better off reading the guide, FAQ and so forth on the site.

You can go [as you should have with this question] to the Tax sticky
- if you go to page 3, you'll find my post - which will be updated today regards the "fun way" Twisted Evil . I posted a run down of the simpler aspects of the Tax filling procedures, including what to do if they cheat, or don't file Twisted Evil . I can't tell you regards the more obscure deductions, like cash cards [there was a really interesting post on that a few days ago, if you care], but you'll get your basic procedural questions answered.


Last edited by georgewallas on Thu Jan 31, 2008 4:55 pm; edited 1 time in total
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reactionary



Joined: 22 Oct 2006
Location: korreia

PostPosted: Thu Jan 31, 2008 4:00 pm    Post subject: Reply with quote

what tax sticky - tax refund procedures? does this question apply to that topic? i think not, cheeky.

i did check the sticky that listed all the websites of various agencies and got the wrong website, so, "GO STICKIES!"
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the eye



Joined: 29 Jan 2004

PostPosted: Thu Jan 31, 2008 4:24 pm    Post subject: Reply with quote

reactionary wrote:
well, that's the thing. if you punch it into the tax website, it is correct. 2.9 mill is taxed at a higher % than is 2.3. it pushes me into a higher tax bracket.

the thing is...I DIDN'T ASK FOR A HOUSING ALLOWANCE. This is housing they chose and gave to me. I didn't have to pay taxes on this last year, and I didn't until recently (once I forced them to pay my pension). It's a goddam claw-back technique and I'm tired of dealing with it. My only response is just to be a complete lazy sod at the work place and be completely unhelpful


http://www.nta.go.kr/eng/default.html

It doesn't matter who chose the building, and most people are still untouched by this new tax. It's just starting, and some schools are absorbing it, like min is.

It does sound like your school is miscalculating it and overcharging you. It should be less than 25,000won per month, even in Seoul.
Get the Tax Office phone number from the website I just listed and call them. At the bottom of the main page, click 'help desk'.
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reactionary



Joined: 22 Oct 2006
Location: korreia

PostPosted: Thu Jan 31, 2008 4:29 pm    Post subject: Reply with quote

^

Thanks, will do.
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georgewallas



Joined: 26 Nov 2007

PostPosted: Thu Jan 31, 2008 5:06 pm    Post subject: Reply with quote

reactionary wrote:
what tax sticky - tax refund procedures? does this question apply to that topic? i think not, cheeky.

i did check the sticky that listed all the websites of various agencies and got the wrong website, so, "GO STICKIES!"


Sigh, yes, the "tax refund procedure" sticky is the "tax sticky" I referred to. When you click on page 3, you scroll down. You'll find my posting. Then you may notice there's a URL at the top [it's blue, and underlined]. You should click it twice and go to the Help section on the site. You'll find an amazing surprise.

No, I don't answer the general Q of this thread, I am not an accountant, and just as curious to hear what others have to say/know about it. I was answering your Q, glib.
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reactionary



Joined: 22 Oct 2006
Location: korreia

PostPosted: Thu Jan 31, 2008 5:09 pm    Post subject: Reply with quote

http://forums.eslcafe.com/korea/viewtopic.php?t=105423



The tax sticky with contact info for NTS in the title, among others - had the incorrect website, thus I asked. Perhaps, O Sticky Warrior, thou shouldst amendst it?

I'm not interested in Tax refund procedures, didn't look there. I wouldn't ask an apple vendor for an orange, even if they're both fruit.
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georgewallas



Joined: 26 Nov 2007

PostPosted: Fri Feb 01, 2008 3:38 am    Post subject: Holier than thou Reply with quote

DavesEslCafe is a great site for many things, but information for every day problems can be lacking or partial or badly named.

You did ask about the NTS phone number at one point,
Quote:
By the way, a nyone have the tax office number? The website (as seen in the sticky - http://nts.go.kr/) is a bunch of chicken scratches.
I wasn't following the thread names, only the contents. So I thought that you were a lazy reader, rather than initiator, and for that I apologize.

The link is http://www.nta.go.kr/eng/default.html

International Unit

For specific questions about your tax status or help, call at phone numbers below
Open Monday from Friday 10:00am to 5:00pm.

Transfer Pricing: 82-2-397-1457
Tax Law Revision:82-2-397-1458
Foreign Branch:82-2-397-1443
Foreign Direct Investment:82-2-397-1444
Individual Income Tax:82-2-397-1444
Tax Withholding:82-2-397-1447

I think tax law or individual income are your best bets.
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