Korean Job Discussion Forums

[linky123]

If you are making 2.2 or 2.4 mil as a monthly salary, how much do you usually pay for national pension, tax, and medical insurance out of your pocket. I would like to know if what you pay from PS is different from private hakwon.

Thank you in advance for the information.

[Zaria32]

There are many current posts which have the actual figures (%) in
them, so spend some time and look for them.

WHERE you work has no impact on the % you pay for taxes, medical
insurance or pension, but HOW MUCH you earn does effect the total
of each one, and in some cases the %.

Don't let anyone tell you that income taxes on hogwon teachers is different or higher than on others earning the same amount...taxes are
based on the amount you earn, not where you work.

[naturegirl321]

I've heard that American teachers don't have to pay taxes for two years in Korea. I'm assuming this is optional, right? I'd much rather pay the 5% in Korea, or so, then 20% in the US or 30% in Peru.

And from what I understand, you get it back if you file tax returns?

[Zaria32]

5% is way too high for Korean Income Taxes. There is a different % for
income tax, health insurance and pension. If you really meant just income tax then 5% is too high.

You're better off paying Korean taxes than US taxes. Although there's an $80,000+/- exclusion in the US, I don't know about FICA etc. and as your Korean employer wouldn't pay that, you'd have to pay it at about 15%. Also, the rules about dates for the exclusion are pretty tight.

[naturegirl321]

[sjk1128]

But your tax home has nothing to do with where you pay (or don't pay) taxes. It has to do with where you earn your income and/or live. Check out pp. 12-13 for more info:

http://www.irs.gov/pub/irs-pdf/p54.pdf

As an American, you can and should file (through your employer) for an exemption from Korean income tax your first couple of years working in Korea. You can also claim a foreign earned income exclusion for the money you make in Korea - if it is less than $91,400 and your situation is not more complicated, i.e. you don't have lots of interest income, rental income, etc. in the US. Most people who come to Korea from the US can conceivably pay no tax anywhere the first 2 years and very little in the years thereafter (to Korea). That's part of what makes Korea a good deal financially for us! In my experience, the problem is in getting your Korean employer to follow their country's own rules, not with the IRS or the Korean Tax Office.

[naturegirl321]

Hm,
Ok, thanks so much. I'll talk to my employer then.

I earn about 15 usd on interest in the US, if that. So I should be good!