Korean Job Discussion Forums

[hanney]

Hi,

Recently we have a problem on how or what is the " Basic Income " should be use on pension contribution calculation. The boss was saying, since foreigners were getting examption 30% for their Income tax, therefore, the " basic Income " statement to be use on pension calculation should be base on Taxable Income.
I talked with the person from Pension office, he agreed with the boss that the basic income statement should be on Taxable Income.

Meanwhile I look on the pension website there is a amendment about what is Income is :

http://www.nps.or.kr/jsppage/english/act/act_01.jsp

Classification
Repeal of the 45 income classes
(Article 3(1)(5)

(Before)
�Income� refers to earnings gained by offering service, running a business and operating assets, etc. for a specified period

After
�Income� refers to earnings, which does not include a tax-free income determined by the Presidential Decree, gained by offering service for a specified period, or earnings gained by running a business and operating assets for a specified period which necessary expenses are deducted from.
=======
Base on above information, in some way, foreigners are getting 30% " tax free income " which is only 3.3% for income tax, in directly lost 4.5 % from " that " for pension .

Anyway, If this is wrong, Please kindly help me., The pension office/boss said, unless I have any other evidence or proof that they are wrong.
Thx. Jon

[hanney]

And here the information from "Income tax" website , about what is " Non Taxable Income "
http://www.nts.go.kr/eng/resources/resour_21.asp?minfoKey=MINF7420080211223143&type=V#

Non-taxable Income
∙Compensation of Actual Expenses
- wages that are received by a worker due to natural disasters and other calamities, pays for business travel, etc.
- compensation for driving one's own car, research subsidies for qualified teachers,reporting allowances for reporters : limit is ￦200,000 per month
-Salary derived from overseas : limit is ￦1,000,000 per month ∙
-Special Tax Treatment for Foreign Employees : up to 30% of Gross Wage & Salary Income ∙
-Allowance for Night Duty received by manufacturing employees : limit is ￦2,400,000 per annum ∙Meal costs of less than ￦100,000 per month, etc.