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chrisassd
Joined: 04 Apr 2010
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 Posted: Sun Apr 11, 2010 5:16 am Post subject: Tax question... |
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What is residence tax? I've not come across it before.
Would seeing this paragraph in a contract be a deal breaker?
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| "Month" and "monthly" refer to a session (4 weeks) of the school calendar. Salary will commence from the first day of teaching. Payment of the aforesaid salaries will be made in Won. Korean income tax, residence tax (10% of income tax), medical insurance charge and Korean national pension scheme deductions will be withheld. Monthly salary payment will be made on or before the tenth day of the month following the month during which the Employment services were provided. |
Thanks! |
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amemorylost
Joined: 19 Oct 2008
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| Posted: Sun Apr 11, 2010 7:40 am Post subject: |
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Right, it's been a bit of time since I've talked about Korean tax so others can feel free to correct me, but...
Basically there are two ways you could get taxed: the correct way(a combination of taxes including income. residence, health and pension) and the standard, dodgy-Hagwon way (a flat tax as a freelancer: about 3.3% from what I remember, but no pension or health insurance). The residence tax is some tiny percentage but does exist, and from what I remember you should normally be paying around 8% in deductions when you add all those taxes and contributions together.
I think the best way to work out if you're being scammed or not is to find out how much your employer thinks you'll pay in deductions, so ask him for the combined total of deductions from your salary. It sounds legitimate enough (if 10% of income tax means something like 0.12% given the small amount of income tax you pay on the correct tax status) |
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Senior
Joined: 31 Jan 2010
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| Posted: Sun Apr 11, 2010 8:01 am Post subject: |
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| I pay "residence tax" at my PS job. I think it amounts to 4000won a month. |
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