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berrieh
Joined: 10 Feb 2009
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 Posted: Fri Feb 27, 2009 8:43 pm Post subject: Proper tax rates for a hagwon? |
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What is the proper tax rate on income tax if working at a hagwon? Is it a range? I've heard talk of a "scale" - is it based on income, a progressive scale?
I know pension is 4.5 for teacher, 4.5 for school and that medical is also 50/50. I'm not sure about taxes. I saw an ad that said tax-just tax, not medical or pension-was 7.6% (I didn't particularly like the job or plan to apply for it anyway, but that seemed like a ripoff to me, as though they were charging a fake rate. Am I right?) |
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lebowski
Joined: 30 Jan 2003
Location: Seoul
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| Posted: Fri Feb 27, 2009 8:49 pm Post subject: |
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Some hagwons will try to get away with calling you an independent contractor, and will then charge 3.3% tax. Odds are they won't pay into pension.
If they call you an employee, then it is on a sliding scale. You can find the info out on here, but it for around 2.3 million won, I believe it shouldn't be over 2%
http://www.nts.go.kr/eng/ |
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losing_touch
Joined: 26 Jun 2008
Location: Ulsan - I think!
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| Posted: Fri Feb 27, 2009 8:56 pm Post subject: Re: Proper tax rates for a hagwon? |
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| berrieh wrote: |
What is the proper tax rate on income tax if working at a hagwon? Is it a range? I've heard talk of a "scale" - is it based on income, a progressive scale?
I know pension is 4.5 for teacher, 4.5 for school and that medical is also 50/50. I'm not sure about taxes. I saw an ad that said tax-just tax, not medical or pension-was 7.6% (I didn't particularly like the job or plan to apply for it anyway, but that seemed like a ripoff to me, as though they were charging a fake rate. Am I right?) |
I saw that ad myself and laughed. It is a complete rip off! |
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berrieh
Joined: 10 Feb 2009
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| Posted: Fri Feb 27, 2009 9:48 pm Post subject: Re: Proper tax rates for a hagwon? |
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| losing_touch wrote: |
| berrieh wrote: |
What is the proper tax rate on income tax if working at a hagwon? Is it a range? I've heard talk of a "scale" - is it based on income, a progressive scale?
I know pension is 4.5 for teacher, 4.5 for school and that medical is also 50/50. I'm not sure about taxes. I saw an ad that said tax-just tax, not medical or pension-was 7.6% (I didn't particularly like the job or plan to apply for it anyway, but that seemed like a ripoff to me, as though they were charging a fake rate. Am I right?) |
I saw that ad myself and laughed. It is a complete rip off! |
Well, I'm mildly proud of myself for recognizing it (seeing as I've never actually signed a K contract yet, though I've seen a few).
I thought it was about twice what it should be, but I guess it was even a little more than that! Bad sign for the poor fellow/gal they sucker into coming to their school. I'm sure that's not the only way they'll screw 'em.
Glad to have the scale. Thanks much, lebowski. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Sat Feb 28, 2009 9:30 am Post subject: |
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To check for the proper monthly withholding rate, go here:
http://www.nts.go.kr/eng/help/help_52.asp?top_code=H001&sub_code=HS05&ssub_code=HSE2
Korea's progressive income tax rates range from zero to 36%. Your tax should not be a fixed percentage in your contract. It should be according to the NTS site. Look up your proper withholding on the site. Do not pay more.
If the contract asks for more, do NOT try to change the contract. The employer has already tipped his hand. Find a new job. |
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