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KimchiExplosion
Joined: 01 Jul 2007
Location: Nowhere near Seoul
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 Posted: Sun Mar 21, 2010 6:21 pm Post subject: New tax system for E2s in effect? |
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| My school is trying to tell me that a new tax system has been put into effect for Foreign Teachers, in which we now have to pay 30% of our income in taxes. Has anyone heard anything about this? It seems to have come completely out of left field. I'm at a public school, and about half way through my contract. This seems very suspicious. Please advise. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sun Mar 21, 2010 6:28 pm Post subject: |
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| Well, I don't know about that. I'd get your school or a Korean friend you trust to call the local tax office and find out for yourself. If the tax rate has gone up, we'd better get a raise or start looking for other places to teach. Why else would be come here if we're not going to make any money. Tell them you are paying it. If they deduct it, you'll sit in the finance office all day long until you get the money back. Seems like they could be misinterpreting the rules if there any. |
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big_fella1
Joined: 08 Dec 2005
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| Posted: Sun Mar 21, 2010 7:00 pm Post subject: |
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Do a search and you will find posts in the Job discussion section. You now pay tax on 100% of your salary, it was previously 70%.
[urlhttp://forums.eslcafe.com/korea/viewtopic.php?p=2319539&highlight=#2319539[/url]
No you do not have to pay 30% tax. Less than 2% for most people. |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Sun Mar 21, 2010 7:00 pm Post subject: |
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This was hashed out months ago. Here's the skinny.
Years and years ago, Korea made a rule that foreigners could get a 30% exemption on their taxes. In effect this means we only pay 70% of the taxes due on our salary. (This was done to attract foreign investment but covers us too.) However as 2010, Korea revoked this rule, meaning that we now are supposed to pay 100% of the taxes. Hence the 30% in your post.
Yes...it's legit. It's not going to be a huge hit..30% is less than half of what you are currently paying in taxes.
Seems like somebody at your office got confused. The 30% exemption has been revoked but that does NOT mean we pay 30% of our income in taxes. |
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KimchiExplosion
Joined: 01 Jul 2007
Location: Nowhere near Seoul
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| Posted: Sun Mar 21, 2010 7:03 pm Post subject: |
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| I make 2.2 a month, and they're saying they'll deduct just over 70k. I'm a little paranoid right now. Any tips on convincing them that this isn't the case? |
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KevinLS
Joined: 23 Oct 2009
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| Posted: Sun Mar 21, 2010 7:43 pm Post subject: |
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| KimchiExplosion wrote: |
| I make 2.2 a month, and they're saying they'll deduct just over 70k. I'm a little paranoid right now. Any tips on convincing them that this isn't the case? |
That's 3.2%
What's the problem? |
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Street Magic
Joined: 23 Sep 2009
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| Posted: Sun Mar 21, 2010 7:45 pm Post subject: |
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| KimchiExplosion wrote: |
| I make 2.2 a month, and they're saying they'll deduct just over 70k. I'm a little paranoid right now. Any tips on convincing them that this isn't the case? |
You know 70k isn't 30% of 2.2 million, right? Your first post seems to suggest that you think it is. 660k would be 30%. Did you mean to type 700k? |
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Senior
Joined: 31 Jan 2010
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| Posted: Sun Mar 21, 2010 8:02 pm Post subject: |
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Haha, crickets.
I think someone is vigorously forehead slapping themselves right now. |
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Hamlet
Joined: 18 Mar 2008
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| Posted: Sun Mar 21, 2010 8:05 pm Post subject: |
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| I'd get your school or a Korean friend you trust to call the local tax office and find out for yourself. |
This post is heading in the right direction--take responsibility for yourself and get educated. What you don't need to do, though, is get a Korean friend to call the tax office. The Korean government has done a great job of making information available.
Go here: http://www.nts.go.kr/eng/index.asp
The site has all the information you need. Read the "Guide to the Year-end Tax Settlement for Foreigners," and the "Major Changes for 2010," and you will know everything you need to know about doing your taxes in Korea.
My company told me that I had to pay 188,000 Won for my year-end tax settlement. I did the tax paperwork myself and found out that I was due a 1.5 million Won refund, which I received in my last paycheck. 
Bye the way, OP, if your boss is taking 70k a month, that sounds about right....it's definitely not 30% of your 2.2 million Won salary...and even if they do take too much you will get it back at the end of the year--but only if you take control and learn how to do your own taxes. |
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KimchiExplosion
Joined: 01 Jul 2007
Location: Nowhere near Seoul
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| Posted: Sun Mar 21, 2010 8:14 pm Post subject: |
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Seems my school had somehow added an extra zero to the amount to be deducted. I got them to recheck it, and they realized their mistake. Guess I had a heart attack for no reason  Anyway, thanks for all the advice. |
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Triban
Joined: 14 Jul 2009
Location: Suwon Station
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| Posted: Sun Mar 21, 2010 8:41 pm Post subject: |
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| MY NAME IS JANE I AM MISS UGANDA. |
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Nemo
Joined: 28 May 2006
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semphoon
Joined: 18 Nov 2005
Location: Where Nowon is
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| Posted: Thu Mar 25, 2010 6:48 am Post subject: |
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I have heard that people on E2s (non permanent workers) are not effected by the is new rule.
Has anyone else heard of this? More importantly, is it correct? What should now be the new tax rate for us E2s?
Many thanks |
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big_fella1
Joined: 08 Dec 2005
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| Posted: Thu Mar 25, 2010 8:46 am Post subject: |
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| semphoon wrote: |
I have heard that people on E2s (non permanent workers) are not effected by the is new rule.
Has anyone else heard of this? More importantly, is it correct? What should now be the new tax rate for us E2s?
Many thanks |
Not true.
E2's are on a 1 year visa, this makes you a resident of Korea for taxation purposes. You are treated as is any other resident. |
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