Korean Job Discussion Forums

[mmarshalynne]

I have heard that income tax should not be more than 2% on 2.4 million won. However my contract said 3.5 to 5% and when I questioned it, my recruiter stated that there are new guidelines and it would be corrected to read 3 to 3.5% because that is the correct amount. Anyone know about this?

[Otherside]

It means the school will be registering you as an independent contractor. You'll be taxed at 3.3%. Many schools who do this often try get out of paying pension and medical (though it does not necessarily go hand in hand).

There are no benefits for you to be classified as an independent contractor, not to mention it is directly opposed to your visa (your school is sponsoring you to work there and only there...how can you be an independent contractor??) yet authorities don't seem to mind.

For the record, at 2.4mill you should be taxed 52130 (2.1%~) vs 79200 (3.3%)

[nomad-ish]

[garykasparov]

A fixed percentage of 3 - 3.5% is not applicable to a foreign language teacher who has been issued an E2 Visa, paid a monthly salary, and one who signed a contract where the teacher is an employee and not an independent contractor. You can check how much your employer should deduct from your monthly salary on the National Tax Service website below:

http://nts.go.kr/eng/help/help_52.asp?top_code=H001&sub_code=HS05&ssub_code=HSE2

[icicle]

The recruiter is definitely not telling you the true facts ...

If you want up to date guidelines for this then what better source is there than the Korean National Tax website ...

On the website is a May 2008 document called "Individual Income Tax and Benefit Guide for Foreigners 2008)


http://nts.go.kr/eng/resources/resour_21.asp?minfoKey=MINF7420080211223143&type=V

Icicle

[Zaria32]

The recruiter is lying...and let me make this clear...the recruiter KNOWS that the contract amount is incorrect, so his or her "new guidelines" is hogwash.

It may be that the hogwon is going to register you as an independant contractor (which you are not) but it may also mean that the hogwon simply intents to file income taxes on your bahalf, and then pocket the overpayment, or pay the correct amount to the tax man, and pocket as you go along.

Another possibility is that the hogwon owner, if the hogwon is new, is simply following the recommendation of the hogwon association in their area.

Tell the recruiter to tell the hogwon to correct the inaccurate amount.

[mmarshalynne]

My recruiter states that all of the contracts that he is handling... 19 to be exact .. have the same 3.3 to 3.5% (of course, mine started at 3.5 to 5%) and that although he thought the hogwan owner was just going to tell me to shove it, the hogwan owner said he would check with his accountant. He stated that the law was new and that he couldn't figure out the tax rate from the site. To be honest, I couldn't look at the site and figure it out there either. He also said that it is just $23 a month and why would I quibble about $23 a month. I told him that its the principle. If they will rip me off $23 a month, they will likely rip me off of my severance pay at the end as well. He stated that owners want to know that teachers are not concerned about money, that they are concerned about teaching children. I stated that is a manipulative thing to say to keep teachers from getting the money they are owed. He said to his surprise they still want to hire me, and he will get back to me on the tax issue.

Can anyone tell me how and where to go on the the tax site to figure it out. Thanks.

[mmarshalynne]

Despite the language of the contract to the contrary, just found out that they are hiring me as an independent contractor, thus no severance pay, and no medical.

[nomad-ish]

seriously, i'd drop that recruiter. recruiters are never honest, but you can find one that will jerk you around less once he's been caught on something.

here's the site:
http://www.nts.go.kr/eng/help/help_52.asp?top_code=H001&sub_code=HS05&ssub_code=HSE2

it's in man won... so 2.4 mil is 2400 man won. type that in there, and you get 52, 130 won (providing you have no dependents, children).

and just for the record, you'd save over 300 won/year.

[nomad-ish]

[Ut videam]

[mrsquirrel]

[spliff]

OP, when you eat does food fly out of your mouth? If so, please don't consider a public school.

[mountainous]

[I-am-me]

Get out of there now!! Tax rate is 1.7% and about 1.9% for 2.4 million won. Dont let them sign you up as an independent contractor. You wont get medical or pension. The recruiter knows exactly how much the tax rate is. They just like to play stupid. Remember who is paying them.