Korean Job Discussion Forums

[KoreanAmbition]

I'm asking for information from Canadians.

I know this info is archived here on Dave's, but as usual I can't get the search function to work.


This is my first year in Korea. I work for a national univeresity. I am NOT a non-resident of Canada.


Will I have to pay taxes in Canada for 2008 based on my earnings from here in Korea?


I repeat, I am NOT a non-resident of Canada. I used to think there was some form of tax shelter for the first 2 years that a Canadian works in Korea, however I can't find it on the gov't website.

If someone can "prove" this fact through website link that would be greatly appreciated.

Thanks for your help.

[TheChickenLover]

You owe taxes to Canada on ALL your world income if you are deemed a resident of Canada.

Chicken

[marlow]

[OBwannabe]

I've asked this question in a few threads before, but have never recieved and adequate answer. I'll try my luck again, but will word it a bit differently.

Here goes...
I've been working in Korea for over 3 consecutive years. I am still considered a resident of Canada ( I guess) and file my income taxes there each and every year. I claim everything I make in Korea and covert it to Canadian dollars using whatever exchange rate revenue service is using that particular year. I make above average wages I think (2.5 million/mth) and have never owed anything to the tax man back home. Actually, I recieved a small return my first 2 years and g.s.t is still deposited in my account back home every so often.

So, my questions are...why would someone want to be deemed a non-resident of Canada? Are there English teacher's here who actually owe money after filing their income tax return? If so, how much does one's annual income have to be in order for them to have to pay Canadian income tax. And is there something I'm missing? Should I be worried that one day I'm going to find out that I owe a tonne of money to the tax man, even though I've filed my tax return every year.

Until I actually find out that I owe the gov't money after filing taxes I see no need to change my residendcy status. Are there people here that have actually ended up paying taxes in Canada while working in Korea, or would have to if they were deemed a resident of Canada? If there are people here who have been in this situation, is it cuz they are making so much more money than me? If so, give me a tip as to how I can find one of these pimp paying jobs....thanks

[OBwannabe]

Sorry, I just realized I hijacked this thread. No point in starting a new thread regarding a very similar topic anyway though.

Wish I could help you OP. But clearly I have no idea

[KoreanAmbition]

OB,

Wow, I'm hoping I hear this from some other teachers. So you declare all of your earnings and don't pay anything in Canadian taxes each year? I sure hope I can do that.

Just curious, what province are you from?

As for hijacking the thread... no problem. We can kill 2 birds with one stone maybe.

Thanks for your reply.

If anyone else pays income tax in Canada on earnings from Korea, can you tell me the income tax % that you are responsible for.

Thanks

[OBwannabe]

I'm originally from New Brunswick. Not sure if that matters or not.
Yep, I claim everything. Every cent (won) I make. I so often hear of people getting in a huff about gaining non- resident status that it makes me worry that I'm somehow in for a rude awakening one of these years.

Thing is, if you make under a certain amount each year back home you get a return each spring. My guess is that I don't make enough in order to pay income tax. Otherwise I don't have any explanation.

I really wish someone could sort me out.

[Big Mac]

How do you know you are not a non-resident? Have you filled out an NR73 form? Da google search on NR73 to download the form from Revenue Canada. The two big things that will require you to pay tax in Canada are if you own property or if you have dependents in Canada. If you don't have either of those, then you can easily get around having to claim your Korean income by asking Revenue Canada for an opinion on your residency status (NR73). Revenue Canada will never tell you that you are or aren't a resident of Canada...they'll only give you an "opinion" that is not legally binding when you file the form. If you don't like the answer they give you, you can cut some ties and send them back the form until they give you the answer you like.

If you have roughly more than three ties to Canada (Revenue Canada won't tell you exactly how many and they also weigh certain ones differently) as shown on the NR73 form, then you will be considered a factual resident of Canada and will be required to pay tax on your Korean earnings, minus whatever you paid in taxes in Korea.

If you have less than roughly three ties you will be considered a non-resident of Canada and you don't have to tell Revenue Canada about any of your overseas earnings. If you had any earnings in Canada for part of the year, only claim your Canadian earnings...not your Korean earnings.

This is my fourth year here. Every year I get my parents to go to the post office, get me a tax form and mail it to me. I fill it out and put "0" as my income. I then fill out an NR73 form and put it with my tax return. I mail it all to the international tax office in Ottawa. They send me an assessment with "0" everywhere and all is good. I've never had a problem with doing it this way, and this is exactly what Revenue Canada told me to do when I called them a few years ago to ask about it. Every year they also send me a separate letter to tell me that in their "opinion" I am not a resident of Canada.

[yingwenlaoshi]

I couldn't be bothered filing any taxes back in Canada just so they know I'm telling them I'm a non-resident and shouldn't be paying any. It's a non-issue.

I left Canada in January, 2003 for Taiwan. Spent 2 years there with no working visa. So as far as Taiwan and Canada are concerned, I didn't work. I entered Korea on my first working visa in Asia (after leaving Canada) in March, 2005. My driver's license expired in June, 2003. My health card expired before that, best of my memory. Nothing else ties me there except my bank account which has been pretty much dormant save a handful of money transfers from home. That's it.

I am definitely a non-resident and don't feel the need to tell anyone. I'm not there.

I haven't even filed taxes in Korea. I'm thinking about doing that this year. I stand to get some money back.