Korean Job Discussion Forums

[Senior]

Just got an official looking letter from my co-teacher. It seems the expiration of the tax exemption is official.. Kind of sucks that we are losing another perk.

By the letters calculations, a person on 3mil, will go from 25,000 to 110,000won in income tax.

Kind of sucks getting a letter telling you that will be taking a pay cut.

Anyone else get this?

[afsjesse]

Compared to the states, it's still a steal! I mean think about it, 100k and some change per month on a 3m won salary? While it does suck, it's really a minute thing when compared to back home.

[air76]

We never received a letter, but I did notice that our taxes had gone up much more than we'd expected this year. We are making a lot more money this year due to a restructuring of our contract to include a raise and guaranteed overtime, so I just assumed that the tax increase was due to the higher salary (I don't mean the total tax, but the tax %) but maybe it's due to the change in tax policy.

[Senior]

[ChilgokBlackHole]

Today is literally my last day of work. See yaz.

[Mr. Pink]

[Hamlet]

Yes, it's true.

* Second, the special tax treatment is change. Last year, foreign workers could choose either non-taxation treatment on 30% of the gross earning or 15% flat rat, but where the former is abolished this year, only 15% flat rate is applied.


http://www.nts.go.kr/eng/nts/nts_01.asp?minfoKey=MINF7220080211223559&type=V


I figured my own taxes for 2009, with and without the 30% deduction. I make 3.3 per month.

With the 30% deduction, I paid less than 200,000 in annual taxes. Without the deduction, I will pay about 1.7 million! That's a big hit, but compared to living and working in California, it's nothing.

In California we pay FICA 8.45% + Unemployment Insurance + fed tax + state tax + 8.25% sales tax (the highest in the country) + if you own a home they take a pint of your blood per week for property taxes + it's mandatory that you be an organ donor! + vehicle registration fees + gas tax + if you smoke or drink a government official will come to your house once a month to punch you in the face (to collect more of your blood).

Senior, let's start a club!!

[banjois]

Sorry if this is a dumb question, but how does 1.7 million/year on a 3.3 million/month equal a 15% flat tax rate? Wouldn't that be more like 6 million? I've sorta looked at the tax site, but couldn't find anything/nodded off and drooled on the table while trying to figure it out....

[caylia]

[Senior]

Ick. In 18 months they won't be able to work out why tax revenues have declined, despite increasing the tax rate. Laffer curve in action.

Sales tax is 12.5% in NZ and they're talking about increasing it.

[Hamlet]

[Ramen]

We all know that free housing in Korea is not taxable. How about if you opt for housing allowance instead? Is housing allowance taxable in Korea?

[Hamlet]

[ChilgokBlackHole]

[reactionary]

DAMN. now maybe this is why the public schools were pushing employees to get their "tax exemption" residency certificates. i should've pushed harder to qualify for that!