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htrain
Joined: 24 May 2007
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 Posted: Wed Jun 18, 2008 9:49 pm Post subject: tax question |
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I have been asking my boss about my tax refund (didn't get it in January) for a few weeks now. Answers have varied from "I don't know" to "I don't deal with taxes," etc.
I called the main tax office in Jamsil and when they ran my ARC number it says I've never paid taxes and there is no money related to my name. I've been paying 60,000w a month for a year. They said "Have your boss call your local tax office." HA, yeah right.
I'm not happy about this, but I'm leaving Korea in 2 weeks and not coming back. Something tells me I have little recourse because of my timeframe. I should have been more proactive in this but didn't realize until it was too late.
Does anyone have any advice for me? Thanks. |
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crescent
Joined: 15 Jan 2003
Location: yes.
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| Posted: Thu Jun 19, 2008 12:22 am Post subject: |
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WHat's your salary? At 2.1 milion you'd be responsible for about 70,000 per month.
You came out ahead monthly, and would have OWED money at the end of the year. |
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htrain
Joined: 24 May 2007
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| Posted: Thu Jun 19, 2008 12:40 am Post subject: |
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| crescent wrote: |
WHat's your salary? At 2.1 milion you'd be responsible for about 70,000 per month.
You came out ahead monthly, and would have OWED money at the end of the year. |
No, the US has a tax treaty with Korea. If you look at the tax sticky and input your info into the calculator you'll see the spread of what you're supposed to get back at the end of the year (or not get back.) |
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I-am-me
Joined: 21 Feb 2006
Location: Hermit Kingdom
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| Posted: Thu Jun 19, 2008 7:26 am Post subject: |
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| Your boss has pocketed your tax money and will pocket your tax refund after you leave. Since you only have 2 weeks, take someone who speaks korean to tax office and ask to be registered. Maybe they will fine you boss. You should only have been paying 1.7% tax which is about 35,600 per month. He robbed you blind without even using a gun. Do you have your ticket home yet? If you do....I would leave immediately!! |
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big_fella1
Joined: 08 Dec 2005
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| Posted: Thu Jun 19, 2008 1:13 pm Post subject: |
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| crescent wrote: |
WHat's your salary? At 2.1 milion you'd be responsible for about 70,000 per month.
You came out ahead monthly, and would have OWED money at the end of the year. |
Where does this nonsense come from that we pay 3.3% tax.
3.3 % IS NOT THE CORRECT TAX RATE FOR AN EMPLOYEE!
The 3.3% tax rate is the contractor withhold rate for those in business. Those on E2 visa's are not contractors even if they wanted to be, they are prohibited from operating a business under Korea's archaic slave based visa system.
Got that out of my system now. |
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crescent
Joined: 15 Jan 2003
Location: yes.
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| Posted: Thu Jun 19, 2008 5:30 pm Post subject: |
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| big_fella1 wrote: |
Where does this nonsense come from that we pay 3.3% tax.
3.3 % IS NOT THE CORRECT TAX RATE FOR AN EMPLOYEE!
The 3.3% tax rate is the contractor withhold rate for those in business. Those on E2 visa's are not contractors even if they wanted to be, they are prohibited from operating a business under Korea's archaic slave based visa system.
Got that out of my system now. |
Prove it? |
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crescent
Joined: 15 Jan 2003
Location: yes.
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| Posted: Thu Jun 19, 2008 5:31 pm Post subject: |
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| I-am-me wrote: |
| Your boss has pocketed your tax money and will pocket your tax refund after you leave. Since you only have 2 weeks, take someone who speaks korean to tax office and ask to be registered. Maybe they will fine you boss. You should only have been paying 1.7% tax which is about 35,600 per month. He robbed you blind without even using a gun. Do you have your ticket home yet? If you do....I would leave immediately!! |
Prove it? |
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poet13
Joined: 22 Jan 2006
Location: Just over there....throwing lemons.
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| Posted: Thu Jun 19, 2008 5:48 pm Post subject: |
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Prove it? Why? This is a well known and documented scam in Korea. Besides, the OP already "proved it". He or she called the tax office. No record of taxes being paid. OP has been paying every month for a year. What do you think the boss did with the money? Gave it to his church as part of his tithe?  |
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crescent
Joined: 15 Jan 2003
Location: yes.
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| Posted: Thu Jun 19, 2008 5:50 pm Post subject: |
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| poet13 wrote: |
| Prove it? Why? This is a well known and documented scam in Korea. Besides, the OP already "proved it". He or she called the tax office. No record of taxes being paid. OP has been paying every month for a year. What do you think the boss did with the money? Gave it to his church as part of his tithe? |
No. I meant prove what the current tax rate is for hogwan employees. |
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poet13
Joined: 22 Jan 2006
Location: Just over there....throwing lemons.
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| Posted: Thu Jun 19, 2008 6:39 pm Post subject: |
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| Ah, sorry. I didn't understand that. The tax rates however are also well documented, as with the scams associated with them. I paid 5% my first year here not knowing better, and thinking it was a good deal.... |
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I-am-me
Joined: 21 Feb 2006
Location: Hermit Kingdom
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| Posted: Thu Jun 19, 2008 7:38 pm Post subject: |
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| The rate is 1.7% according to the tax office. If you are registered as an independent contractor then its 3.3%. Hagwon owners are not stupid. They will charge you 3.3%, pocket it and count on you to leave after a year then file for your income tax and pocket it. Oldest scam in hagwons. |
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crescent
Joined: 15 Jan 2003
Location: yes.
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| Posted: Thu Jun 19, 2008 7:44 pm Post subject: |
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| I-am-me wrote: |
| The rate is 1.7% according to the tax office. If you are registered as an independent contractor then its 3.3%. Hagwon owners are not stupid. They will charge you 3.3%, pocket it and count on you to leave after a year then file for your income tax and pocket it. Oldest scam in hagwons. |
Well, I've had extensive dealings with the tax office due to this very issue. I have a tax rate of 3.3 in writing.
My hogwan is remitting the taxes they withhold, and I do my own tax return at the end of the year. So, theres is no room for a scam.
I'd still like you to prove this rate of 1.7% for hogwan employees. Documentation? |
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big_fella1
Joined: 08 Dec 2005
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| Posted: Thu Jun 19, 2008 9:06 pm Post subject: |
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| crescent wrote: |
| I-am-me wrote: |
| The rate is 1.7% according to the tax office. If you are registered as an independent contractor then its 3.3%. Hagwon owners are not stupid. They will charge you 3.3%, pocket it and count on you to leave after a year then file for your income tax and pocket it. Oldest scam in hagwons. |
Well, I've had extensive dealings with the tax office due to this very issue. I have a tax rate of 3.3 in writing.
My hogwan is remitting the taxes they withhold, and I do my own tax return at the end of the year. So, theres is no room for a scam.
I'd still like you to prove this rate of 1.7% for hogwan employees. Documentation? |
Go to: http://www.nts.go.kr/eng/resources/resour_41.asp?top_code=R001&sub_code=RS04&ssub_code=RSD1
and click on "Check Your Monthly Withholding Tax" on the right possibly bottom of the screen. Enter the amount in thousands (ie 2,100,000 enter as 2,100) and click for check and
you get the amount w35,560 (I was wrong earlier).
The sooner we stop allowing schools to pimp this bit extra the better. Maybe they should have to advertise net salaries, then the BS may stop. |
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crescent
Joined: 15 Jan 2003
Location: yes.
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| Posted: Thu Jun 19, 2008 9:26 pm Post subject: |
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^^
Not quite.
That calculation is not accurate regarding your year end responsibility. It is merely a guide for tax withholding. It doesn't take into account your pension and health insurance payments, nor does it take into consideration the differences that men and women have to pay.
At the end of the year, someone who's only been paying 1.7%per month will end up paying more.
As I said, I've checkied into it. I have it in writing, and I do my own tax return. |
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big_fella1
Joined: 08 Dec 2005
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| Posted: Thu Jun 19, 2008 10:09 pm Post subject: |
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Hi I just checked using the end of year calculator (same page) and if I claim the 30% foreigner exemption the tax office owes me w237,930 on my w35,560 payment per month without this exemption and claiming no others I owe w207,010 due I guess to the residents tax of 10% added to the year end total.
Waeguk saram, of course people on E2 visa's get the 30% exemption at least if not the 100% tax exemption.
Tax is complicated I know but 3.3% is a ripoff for a foreigner.
The other problem is in 2 years here I have not had an employer remit tax on my behalf, and they have had no consequences even after I went to NTS and they are able to sponsor new visa's. Maybe Korea's fair tax system means most of us are not liable for tax once credit/checkcard, medical, other deductions are allowed so the NTS doesn't question why Hagwons aren't remitting the tax they take.
This could be a case of what foreigners find fair and Koreans find fair being different. |
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