Korean Job Discussion Forums

Smee · Joined: 24 Dec 2004 Location: Jeollanam-do

Hi, since the search function doesn't work at all and since the stickies in the FAQ thread aren't operational either, I'll have to hit y'all with a question that's probably appeared a ton of times. Sorry.

The folks at my school have told me I will have to start paying Korean income taxes, as I've been here more than two years. Can somebody provide me a link to the rate they should be deducting? I thought I recall the 3.3% figure floating around, but I don't remember if that was for income tax or pension or something else.

Googling around I see it should get deducted automatically from my paycheck. Do I have to do anything else? Fill out any forms?

Also, I'm pretty sure I paid taxes last year, and I know I didn't get any refund. So is there a way to apply for the refund, then? My first year it was just given to me without asking. Damn, that's one of the draw backs of rarely getting a pay stub while working in Korea. Confused

Smee · Joined: 24 Dec 2004 Location: Jeollanam-do

*bump*

bgreenster · Joined: 06 Feb 2007 Location: too far from the beach

I'm kind of confused by this. Aren't we all supposed to be paying income tax, regardless of how long we have been here? I've been paying 3.3% since Day 1 last year... I know some people don't pay, but I also thought that was illegal (??)

I-am-me · Joined: 21 Feb 2006 Location: Hermit Kingdom

I just posted about taxes. I have been here over 4 years and starting to wonder if boss registered me as a taxpayer. If you have been here long make sure you also go to tax office which I will be doing tomorrow.

DaffyD73 · Joined: 28 Nov 2007 Location: Planet Earth on the left

big_fella1 · Joined: 08 Dec 2005

There is a practice where private companies deduct tax at 3.3% but do not remit this amount to the tax office. I know this because I have had a legal employer do it to me. I walked into the tax office to get a certificate of taxes I have paid to extend my visa and was told I hadn't paid tax hence my sojourn in Korea will end soon despite having money withheld from my pay (my main visa is not E2 hence the requirement to show tax has been paid to extend).

On the 3.3% tax this is a withholding rate on business to business payments. I am not an expert but using the Korean Tax office website I think you would need to be making around 2.7 million to pay this much tax otherwise the percentage is lower and you should get a refund.

Now if the government is serious about shutting hagwons some data matching between Immigration and the Tax office on E2 holders and the requirement for E2's to show that they have paid taxes to extend might just do it. But I doubt the Wonjingnims would be the ones that suffered.

In hindsight always get and keep payslips, for not doing that I only have myself to blame.

Zaria32 · Joined: 04 Dec 2007

3.3% is the independant contractor rate, and many hogwons charge it. It's almost double what you should be paying if you are earning 2.1 or 2.2.

There is a website where you can input your salary, monthly (drop 3 zeros) and it will tell you how much tax you should be paying, but I don't have the address...