Korean Job Discussion Forums

pandi · Joined: 02 Oct 2009

Did anyone get any more info about what's happening this year?

big_fella1 · Joined: 08 Dec 2005

For your 2009 return the 30% tax free amount still applies as you can see at: http://www.nts.go.kr/eng/help/help_53.asp?top_code=H001&sub_code=HS05&ssub_code=HSE3

There are 2 returns, the first if you're an employee (not a contractor) requires you to submit all the documents for deductions to your employer by the end of this month (medical, credit/check card spend, etc). Your employer should then give you your refund or take out what you owe (this shouldn't happen) from your February salary, although it may be March depending on your employer.

The other return is due by the end of May, employees and contractors both must file for this one. Employees will find it easy, get a copy of your January return, take it to the NTS and they will reconcile it and it's done.
Actually if the English electronic filing comes online, you will not need to visit the NTS to do this.

Contractors must submit all employers tax withheld statements 'giguptosa' (appologies I am pretty sure my Korean is wrong), deduction documents and file a global return in May of this year.

Regarding the 30% option being removed for 2010, I cannot find it anywhere on the English net. Samils accounting firm has produced a document of 2010 changes and it isn't mentioned here so I think this may be a change that was discussed but not implemented, well at least I hope so.
http://www.samil.com/publication/filemng.nsf/0/A4B75F7923FCD2B1492576A10082176F/$File/tax%20law%20changes%20for%202010%20_ENG_CI.pdf

DosEquisXX · Joined: 04 Nov 2009

When all is said and done, how much money (in raw Korean won) can a novice public school NET stand to lose from this?

bish · Joined: 09 Jun 2007

I also have a question re "Global Income".

If I arrived here in March 2009 will I be taxable on my British income from January to March 2009 as it was part of my "Global Income" for the whole tax year?

big_fella1 · Joined: 08 Dec 2005

big_fella1 · Joined: 08 Dec 2005

Sorry to bump but stop the presses:

The 30% exemption for foreigners has gone this year, but we are not forced to use the flat tax rate (we can but you should only do this if you earn over w110,000,000 per year depending on your circumstances.)

For someone on 28 million per year this change will mean you will pay about an extra 1,260,000 per year in tax or w100,000 per month. Definately a big change. For those of you paying 3.3% this may not be enough if your employer is actually remitting/reporting the correct amounts. Withholding tax amounts should also dramatically increase for those not on the 3.3% method.

Source http://www.austchamkorea.org/news/view.php?sq=198 and download the PDF file from KPMG

RufusW · Joined: 14 Jun 2008 Location: Busan

Bump. I have just been given information about this by EPIK.

For someone earning 3mil a month you should be paying 1.5 million extra a year in tax. Boom!

Anybody worked out exact figures for 2/2.2mil?

Any EPIK teachers seen this kick in yet?

Should it start in May?

Senior · Joined: 31 Jan 2010

DrugstoreCowgirl · Posted: Thu Apr 01, 2010 9:15 pm Post subject:

But there is still tax exemption, right?

Horangi Munshin · Joined: 06 Apr 2003 Location: Busan

My school are continuing to deduct no income tax. I better be able to get deductions or I will be seriously burned at the end of the year!

DrugstoreCowgirl · Posted: Thu Apr 01, 2010 10:25 pm Post subject:

smee18 · Joined: 24 Mar 2009 Location: Korea

Just to let people know, I am Australian, and choose to pay tax here because if I don't I have to pay to Australia, at a much higher rate. This year the tax laws back home are changing, so I have had to register in Australia as a Korean resident for tax purposes, to avoid paying tax to Australia.

kimchi_pizza · Posted: Sat Feb 19, 2011 1:37 am Post subject:

Bump.

Just had a HUGE chunk taken from my February pay due to income tax and another, smaller bite taken out for resident's tax.

This must be what some poster's have been talking about.

Stan Rogers · Joined: 20 Aug 2010

bish · Joined: 09 Jun 2007

me, too. in January and February I have had a total of almost 1 million withheld. From what I have read (and I have read a lot) it shouldn't even be half of that amount.

Am waiting to hear back from my school's payroll and am hoping that they have taken so much because they didn't take enough last year. There's no way I can take this hit every month this year.