| View previous topic :: View next topic |
| Author |
Message |
Ms.G
Joined: 03 Mar 2008
|
 Posted: Mon Jul 07, 2008 4:45 am Post subject: 1st paycheck, is there really a resident tax? |
 |
|
Just got my 1st paycheck and I'm going over it with the comb. There are already some things I've got to bring up tomorrow, but one deduction I was not aware of and I've never heard of before is a resident tax -- is this legitimate?
I live in Busan and the deduction was only 7,420, but hey it adds up. If anyone can give me any information about it I'd be most grateful. Sorry if this has been covered before in a thread -- Dave's isn't working and Google wasn't kind to the search.
Also, the income tax withholding site seems to be broken -- anyone try it recently? |
|
| Back to top |
|
 |
saw6436
Joined: 16 Jan 2003
Location: Daejeon, ROK
|
| Posted: Mon Jul 07, 2008 4:56 am Post subject: |
|
|
| Everyone pays a residence tax. It varies a bit from place to place but generally between W4,000 and W8,000. That covers stuff like garbage collection, street cleaning, etc.. |
|
| Back to top |
|
|
Mr. Pink
Joined: 21 Oct 2003
Location: China
|
| Posted: Mon Jul 07, 2008 5:00 am Post subject: |
|
|
Expect your residence tax to be about 10% of what your normal tax is. So if you are taxed 100,000 a month an extra 10,000 will be deducted.
Other things you will probably be deducted for:
Health Care (2.8% of your total salary)
Pension (not sure exactly how much this is, it scales. About 2.5% or so)
Don't be overly picky, cause the deductions here are nothing compared to what you would pay in your home country.
If you are from certain countries you can get your pension back as well...considering your work puts in 2.5% a month that isn't a bad deal. |
|
| Back to top |
|
|
valkerie
Joined: 02 Mar 2007
Location: Busan
|
| Posted: Mon Jul 07, 2008 3:13 pm Post subject: |
|
|
Be grateful it is only 10% of your income tax. In Japan it is based on salary and the % is wayyyyy higher. Plus, as it is based on the previous year's income you are only billed from year 2. It is not fun to be presented with a whacking great bill, payable in one go or in several installments.
The best bit is that when you finally leave you are (technically) meant to pay one more years at once, cos u r a year behind. I am not explaining this well but basically it is EXPENSIVE. |
|
| Back to top |
|
|
ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
|
| Posted: Mon Jul 07, 2008 3:57 pm Post subject: |
|
|
| Mr. Pink wrote: |
Expect your residence tax to be about 10% of what your normal tax is. So if you are taxed 100,000 a month an extra 10,000 will be deducted.
Other things you will probably be deducted for:
Health Care (2.8% of your total salary)
Pension (not sure exactly how much this is, it scales. About 2.5% or so)
Don't be overly picky, cause the deductions here are nothing compared to what you would pay in your home country.
If you are from certain countries you can get your pension back as well...considering your work puts in 2.5% a month that isn't a bad deal. |
HMMMM......
-Tax is on a sliding scale (about 1.7% for your average teacher) and INCLUDES your residence tax (about 10% of the income tax)
-Pension is 9% of your salary. You pay 4.5% and your employer matches it.
-Medical is 5.08% of your salary. You pay 2.54% and your employer matches it.
There are NO other legal deductions from your salary.
. |
|
| Back to top |
|
|
ChinaBoy
Joined: 17 Feb 2007
|
| Posted: Mon Jul 07, 2008 4:06 pm Post subject: |
|
|
| if you live in an officetel, wait until you get the first bill for that.. about 30 different things listed on there they will bill you for! |
|
| Back to top |
|
|
Ms.G
Joined: 03 Mar 2008
|
| Posted: Mon Jul 07, 2008 4:51 pm Post subject: |
|
|
| Thanks so much for your help! Ttompatz, you're a star as always, and I really appreciate your help. I've been looking online at the tax site to try to get some black and white proof to show the resident tax is part of the income tax -- is there a link you know of that shows this? |
|
| Back to top |
|
|
redcarleft
Joined: 20 Dec 2006
Location: Songtan, Gyeonggido, Korea
|
| Posted: Thu Jul 10, 2008 6:42 am Post subject: pay deductions: |
|
|
I am following the deductions page interestedly as I have just had my first pay slip from a new employer. He is charging me for things I have never seen before (I have worked elsewhere in Korea before), these include:
an unemployment insurance tax  , (figures not on me at the moment), and
an apartment management fee of 20 000won monthly (on top of normal utility bills.
What does anyone know about these two costs?
Many thanks from
Puzzled red |
|
| Back to top |
|
|
ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
|
| Posted: Thu Jul 10, 2008 3:38 pm Post subject: Re: pay deductions: |
|
|
| Ms.G wrote: |
| Thanks so much for your help! Ttompatz, you're a star as always, and I really appreciate your help. I've been looking online at the tax site to try to get some black and white proof to show the resident tax is part of the income tax -- is there a link you know of that shows this? |
Contact the tax advocate on the NTS page.
| redcarleft wrote: |
I am following the deductions page interestedly as I have just had my first pay slip from a new employer. He is charging me for things I have never seen before (I have worked elsewhere in Korea before), these include:
an unemployment insurance tax , (figures not on me at the moment), and
an apartment management fee of 20 000won monthly (on top of normal utility bills.
What does anyone know about these two costs?
Puzzled red |
AS an E2 holder you are EXEMPT from the "unemployment insurance tax".
You can never collect because your job is tied to your visa. No job=no visa = no ability to collect. Call labor at 1350 for confirmation.
The management fee is common. Some times you pay it directly, some times your boss pays it and you pay him. Depends on your villa or housing arrangement.
I have never been a place that didn't have one.
. |
|
| Back to top |
|
|
Mr. Pink
Joined: 21 Oct 2003
Location: China
|
| Posted: Thu Jul 10, 2008 4:38 pm Post subject: |
|
|
| ttompatz wrote: |
| Mr. Pink wrote: |
Expect your residence tax to be about 10% of what your normal tax is. So if you are taxed 100,000 a month an extra 10,000 will be deducted.
Other things you will probably be deducted for:
Health Care (2.8% of your total salary)
Pension (not sure exactly how much this is, it scales. About 2.5% or so)
Don't be overly picky, cause the deductions here are nothing compared to what you would pay in your home country.
If you are from certain countries you can get your pension back as well...considering your work puts in 2.5% a month that isn't a bad deal. |
HMMMM......
-Tax is on a sliding scale (about 1.7% for your average teacher) and INCLUDES your residence tax (about 10% of the income tax)
-Pension is 9% of your salary. You pay 4.5% and your employer matches it.
-Medical is 5.08% of your salary. You pay 2.54% and your employer matches it.
There are NO other legal deductions from your salary.
. |
My numbers might be a little off, but pretty sure what I posted for pension is what my employer is deducting me. For medical, they messed up what I was supposed to be deducted versus what the actual rate is so I just pay a lower fixed rate rather than a %.
For tax, 1.7% seems VERY low. I pay 3.3% tax now, and that is probably too low for what I make (but seems common in most contracts). At my last job my gross was about the same but I was deducted like 5% or more for income tax+residence tax. I think 1.7% must be for those 2.0 mil a month jobs. Tax is on a scaling basis and goes up for every 100k you make or so. |
|
| Back to top |
|
|
redcarleft
Joined: 20 Dec 2006
Location: Songtan, Gyeonggido, Korea
|
| Posted: Fri Jul 11, 2008 6:22 am Post subject: |
|
|
Hi and thanks for all your responses, I really appreciate it. It seems I should enquire officially exactly what my income tax should be from tax dept, and add 10% of that as residence tax, all being normal. I think the only thing my employer is incorrect on is the unemployment insurance tax, which I will chat to him about asap next week.
Thanks again, really appreciate all the feedback,
No longer so confused, Red  |
|
| Back to top |
|
|
ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
|
| Posted: Fri Jul 11, 2008 7:03 am Post subject: |
|
|
| Mr. Pink wrote: |
My numbers might be a little off, but pretty sure what I posted for pension is what my employer is deducting me. For medical, they messed up what I was supposed to be deducted versus what the actual rate is so I just pay a lower fixed rate rather than a %.
For tax, 1.7% seems VERY low. I pay 3.3% tax now, and that is probably too low for what I make (but seems common in most contracts). At my last job my gross was about the same but I was deducted like 5% or more for income tax+residence tax. I think 1.7% must be for those 2.0 mil a month jobs. Tax is on a scaling basis and goes up for every 100k you make or so. |
You might want to check the respective websites or GOVERNMENT advocate services....
I am VERY SURE of the rates and numbers.
Taxes:
tax calculator - input your salary in man won (2.2 mil = 2200)
national pension service - click the link for the english website:
http://www.nps.go.kr/
National medical service NHIC
http://www.nhic.or.kr/eng/
click the "notices" on the lower left side of the page for the current rates. |
|
| Back to top |
|
|
big_fella1
Joined: 08 Dec 2005
|
| Posted: Sat Jul 12, 2008 8:42 pm Post subject: |
|
|
| Mr. Pink wrote: |
| ttompatz wrote: |
| Mr. Pink wrote: |
Expect your residence tax to be about 10% of what your normal tax is. So if you are taxed 100,000 a month an extra 10,000 will be deducted.
Other things you will probably be deducted for:
Health Care (2.8% of your total salary)
Pension (not sure exactly how much this is, it scales. About 2.5% or so)
Don't be overly picky, cause the deductions here are nothing compared to what you would pay in your home country.
If you are from certain countries you can get your pension back as well...considering your work puts in 2.5% a month that isn't a bad deal. |
HMMMM......
-Tax is on a sliding scale (about 1.7% for your average teacher) and INCLUDES your residence tax (about 10% of the income tax)
-Pension is 9% of your salary. You pay 4.5% and your employer matches it.
-Medical is 5.08% of your salary. You pay 2.54% and your employer matches it.
There are NO other legal deductions from your salary.
. |
My numbers might be a little off, but pretty sure what I posted for pension is what my employer is deducting me. For medical, they messed up what I was supposed to be deducted versus what the actual rate is so I just pay a lower fixed rate rather than a %.
For tax, 1.7% seems VERY low. I pay 3.3% tax now, and that is probably too low for what I make (but seems common in most contracts). At my last job my gross was about the same but I was deducted like 5% or more for income tax+residence tax. I think 1.7% must be for those 2.0 mil a month jobs. Tax is on a scaling basis and goes up for every 100k you make or so. |
Mr Pink you are probably being scrooed at 3.3%. Foreigners in Korea have a choice they can receive a 30% exemption on earned income (i.e. your taxable income is 70%) and get deductions (credit/check card spend, mobile phone purchase etc ) or you may elect to pay a flat rate of tax of 17% with no deductions. I haven't done the math but I am told it is only worth switching to the flat rate if you earn more than w150,000,000 a year which rules out most (all) E2 holders. |
|
| Back to top |
|
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
