Korean Job Discussion Forums

[Kurtz]

I realize there is a sticky on Tax but can anyone simplify matters for me?

This is my 2nd year in Korea, 1st in a public school.

EPIK firstly told me I can get my tax back, but I have to give it to the Aust Govt., is this true?

I think I'm being told I either pay Korean tax and give that money the the Aust Gov, or else I have to pay the Aust tax rate for what I'm earning here.

To get the tax back, I need a DOC. What the hell is that and does one exist? the ATO had no idea what I was talking about when I inquired.

In short,

Did anyone get this years tax back and if yes, how? what documents did you need
I'm totally confused dealing with red tape and language problems.

Help!

[OculisOrbis]

In terms of your school withholding your tax, in the contract it says you must provide the tax exemption forms to your school before your first paycheque to be exempt from your tax being deducted from your pay. That's the korean tax rate. Your school should be able to provide those forms to you if you ask for them, if they play dumb, you can get them from the tax office.

If your school has deducted your tax from your pay and you were one of the countries that is exempt-eligible for two years (everyone except canada) then you can file your income tax claim directly with korean tax office and get it back after-the-fact.

what you have to pay in australian tax on your earnings is between you and the australian government. what they don't know, might not hurt you...........

if you have questions, there is a foreigner help line number on the korean tax services website....not sure what it is offhand

[Kurtz]

Thanks for your response, the problem is though they want a DOC or whatever that is from my home country, a form that doesn't seem to exist!

[Michelle]

Hi,

I am curious why you would want to pay tax back in Australia if you can here. Gotta be some sort of income declaration. Wish I could help more. Go to your school and ask for income slips. 'Sae - guem' is Korean for tax.

Don't confuse tax with pension. I have never bothered with tax the PS can deal with it.


Cheers,


Michelle

[Kurtz]

Hi Michelle,

if you drop by this post again, could you explain what tax exemption actually means? Does that mean I don't have to pay any tax?

From reading other posts, I get the impression that in the first 2 years in Korea, certain nationalities such as Australians have a 2 year tax exemption period, and can claim that money back and keep it or am I totally wrong?

If you can't be bothered answering me, do you know a good website? it's all very confusing to me.

[Matilda]

Hi Kurtz, I'm watching your thread with interest. I too have just finished my 1st public school year - my school admin insist that I pay tax on only 70% of my income. They just handed me a form (which I assume is similar to our group certificate) at the end of the last tax year.

This suits me, I figure I paid tax in Korea and (hopefully) don't in Australia. I have tried to find more info, but it has proved futile.

Hope some other Aussies out there can help?

[DavePuff]

I don't work in the public school system but instead a hagwon, so I'm not sure this is relevant. I'm an Aussie and have delcared my income here the last 4 years. I didn't get taxed on it back in Australia (nor would I have expected to) but at least they know what I'm doing overseas and when I do go back it doesn't look a little odd to have all these savings in the bank.

My brother is also an accountant, so I had that working in my favor when it came to tax law.

Its worth contacting an accountant who wil be able to give you a straight answer.

[Kurtz]

Hello Matilda and Dave.

Dave, my accountant back home filled out my tax return in Oz as income $0. She just declared what interest I received from savings and sent it in and no problems.

How can the ATO snoop at your personal savings? how do they know how I got this money? Maybe you don't know this answer but it's all beyond me. Maybe I'll have to call her up and see what the deal is.

What I don't get though is in Korea, what is this 2 year tax exemption?. What tax is exempted? Korean tax or Oz tax? As long as I'm paying my taxes in Korea which I am and do a tax return, it's all rosy right?

What happens after the 2 year tax exemption period?

[DavePuff]

Sorry, I should have stated that it was declared as overseas income and not subject to tax (perhaps Korea and Australia have a tax agreement?).

Anyway, I feel better declaring it. There are plenty that don't and never have a problem, so each to their own. I still feel its important to know what the laws are relating to it (and obviously I don't!).