Korean Job Discussion Forums

[blackjack]

Does anybody know if you are meant to pay tax on your housing allowance. I know we are not talking much money here, but still would prefer won in my pocket than the tax man

[loose_ends]

[big_fella1]

Rest assured there's a good chance that your taxes never reach the tax office!!!!!

[pecan]

No deductions should be taken out of your housing allowance.

It should appear as a separate entry in your bankbook without any deductions (i.e. if you are to receive 500,000, 500,000 should be deposited).

If they happen to be depositing your allowance and your salary as one single statement, instead of two separate entries, just ask them for a payslip for your previous pay and get them to post your future payments correctly.

-Nut

[pecan]

Not sure why others have stated that taxes should be taken out of an "allowance" for housing. Those who take the housing provided don't get taxed on their housing.

I would like to hear more on the "logic" behind the thinking that we should be taxed, as this is the first I have ever heard of it being done.

Those of you that have deductions taken out, where are you located? Is this happening in the S.M.O.E.?

-Nut

[Zaria32]

Under Korean tax law, the value of housing provided, and a cash housing allowance, are treated differently. The former is not taxable, and the latter is taxable.

Now that I've made this profound statement, and in that I am clearly not a Korean tax attorney, I will defer to the greater knowledge of ttompatz... you around tt?

[crescent]

[ttompatz]

[loose_ends]

[pecan]

I just spoke with a tax official and double-checked the nts site, and housing should not be taxed!

http://www.nts.go.kr/eng/data/KoreanTaxation2005(Part_2).pdf

Under "Non-taxable income" on page 47, Article 5, section d, it clearly states that housing allowance is non-taxable.

I sure don't want to be guilty of spreading disinformation. If the official at the NTS misspoke and their website is incorrect, than I hope that you can forgive me. Otherwise, I hope that those of you that said that it should be taxed provide some more info.

For the record, my housing has never been taxed during my 5 years of receiving it.

-Nut

[loose_ends]

[crescent]

Well, I have it in writing, that housing is a taxable benefit. As ttompatz said, there are exceptions.
Anyone who's lived here more than a few months will know that the wheels of bureaucracy in korea are not quite connected. Cogs spin freely of each other.

One paper pusher says one thing and another says another.
Chances are if you work at a small school, which is not incorporated, you won't be subject to the possibility.

In the case of my school, which is very large and incorporated, they pick up the tax. It's only about 14,000won per month anyway.

[Hanson]

It would seem that ttompatz' site corroborates what pecan says... So, who's right? It clearly says that housing allowance shouldn't be taxed, yet people are still coming on (crescent) saying they "have it in writing" that housing is taxable.

What's the deal?!?

[Matilda]

EPIG (through Gimhae City Hall) told me the housing allowance is not taxable.

FYI - I am paid 300,000/mth allowance and only pay 350,000/mth rent on a 2 bedroom apartment (older style but with oven, bath and 2 balconies) with my partner.

[pecan]

Hanson,

Yes, I am curious where this discussion will end up.

For me, housing is an expense, as the district does not provide me with a place to live. Instead, they offer me an allowance.

I don't see how one could consider that income when one considers the expense of having to provide their own housing.

Either way, I look forward learning the truth about this, if I don't already know it.

-Nut