Korean Job Discussion Forums

[Voyeur]

I got a 4 million won tax bill for 2007 somehow. Seems Korean Revenue is now aware of my existence. I work on an hourly basis and no, my employers haven't been screwing me for taxes. Truth is, at my salary for the last 4 years, the 3.3% witholding tax has not come close to covering my legitimate taxes.

Truth be told, I probably owe, legally and legitimately, 12 Million+ won in taxes since 2003.


So what am I to do? I wanted to go home, but the economic crisis had me planning to stay another year. Am I in jeopardy here is I don't pay by the April 2009 due date? Should I send all my money home just in case - even at the bad won rate? Should I just go to Taiwan?

[bassexpander]

What country are u from?

[Voyeur]

Canada. If I paid taxes there, they still would have been much higher. I was making 4-6 Million a month for 3 years and only paying the 3.3% witholding lol I'm really wondering if I should just get the hell out. Could they confiscate my bank account? Refuse me permission to leave before I pay the money?

[bassexpander]

Wow, is that just a Canadian thing? I thought we only paid 3.3 percent, even if we make more. I'm from the USA, though.

I don't know, but would like to know.

[ekul]

[Voyeur]

If you are a normal employee, you employer calculates what is due and deducts all of it accurately. In theory you should still file and if they miscalculated and did not deduct enough, then you owe. Often they deduct too much, then you get a refund.

If you are classified as an independent contractor, the employer simply dedcuts 3.3% witholding taxes. You MUST then file yourself and pay the difference - or get a refund. Usually you owe more. I mean really, who thinks the Korean taxes on 4-5 million a month are ONLY 3.3% all in?

I'm not sure what I will do.

[warren pease]

4 - 6 million a month? DAMN! Can I ask what kind of job you've had?

[ontheway]

From:

http://www.nts.go.kr/eng/help/help_52.asp?top_code=H001&sub_code=HS05&ssub_code=HSE2

4,000,000 won/month:

Monthly Wage & Salary Income : ￦ 4,000 (in thousands)
The number of Dependents : 1 persons The number of children under 20 : 1 persons
Monthly Income Tax : ￦ 251,220


6,000,000 won/month:

Monthly Wage & Salary Income : ￦ 6,000 (in thousands)
The number of Dependents : 1 persons The number of children under 20 : 1 persons
Monthly Income Tax : ￦ 589,720


Looks like you should have paid somewhere between 6% and 10%. Get ready to cough up the big bucks.



Actually, if you file the required amounts, it should be somewhat below the withholding site. Not sure about the penalties though.

[moosehead]

you need to take all - ALL - your money out of your K bank accounts immediately.

if you owe any property whatsoever, be prepared to liquidate it or lose it.

yes, your passport may be demanded and liens may be filed to prevent you from leaving the country.

if you try and change money you could find out your pp has been flagged - might be better to do it at the airport or if possible have a trusted K friend wire it to you in Canada - but they could get caught later in your misdeeds so that's iffy (and depends on your friendship of course)

clear your head and think logically and figure out what's the best course for the immediate future - go home and take a break? then work something out and find another country?

OP - I've dealt w/tax issues before and it's quite difficult - I will never ever let something like that get the better of me again - the anxiety just isn't worth it.

I pay an accountant every year to do my taxes - you have a second chance here - don't do this again - it might not be so easy next time.

good luck and keep us posted - this is the most exciting post on Dave's in a while

[Voyeur]

I won't pay. You are right, I legitimately owe 14M+ - maybe as much as 20M.

Any advice on my best strategy? I need to work for another year before I can go to school. Need more money and need to do some easy 101 level prerequisite classes too. Plus, I'd prefer to stay in Asia during the economic crisis rather than be at home with the unemployment.

My contract is up at the start of June. I was thinking maybe I should just send all my cash home now and find a one-year contract with a small classic shoe-box furnished apt. Sell all the crap I have and go light. That way, at first sign of trouble I just run.

Any chance Korea could suddenly block my departure for unpaid taxes?

Or would you recommend just going to say Vietnam or Taiwan at this juncture?

BTW if anyone knows any good Korea accountants that speak English let me know!

[Ilsanman]

Certainly they can go after you, but if they ask for your passport, tell them to fist themselves. That is property of the Can. gov't and dirty kimberley has no right to touch it.

The smart way is to report only part of your income. Last year I paid out over 4 million in deductions (making about 40 mill on the record) and got 3.1 back.

[Voyeur]

The school I teach at very scrupulously records all my income. I don't teach privates. It is all salary from one school - who's name I won't report but you can figure out pretty easily.

So you don't think they can really keep me in country to force tax payment?

[Chamchiman]

[Voyeur]

[moosehead]