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Smartsuit
Joined: 06 Apr 2010
Location: Korea
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 Posted: Tue Jul 06, 2010 12:20 pm Post subject: NEW Income Tax 2010 Rules. |
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There has been much talk about new income tax regulations for foreigners in Korea. Teachers working for private language institutes don't qualify for the 2-year tax exemption new public school teachers qualify for.
Does anybody know what the tax rate would be for a private language institute teacher earning around 2.4m Won per month or around 30m Won per annum? The 2009 rates were between 3%-4%, as far as I know.
Any comments and info would be appreciated as this subject affects all teachers working at legit schools. |
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Ramen
Joined: 15 Apr 2008
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| Posted: Tue Jul 06, 2010 6:08 pm Post subject: |
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15% flat or .....  |
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Milwaukiedave
Joined: 02 Oct 2004
Location: Goseong
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| Posted: Tue Jul 06, 2010 7:03 pm Post subject: |
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| I know it did change, but have no idea what it is now. My university decided to change the pay structure so that part of our pay was in the form of two "gift" payments for Chuseok and Lunar New Year so that they weren't taxed. This is suppose to help decrease our tax, but I have no idea whether it will work or not. When I heard about it, I was a little leery as it sounded like a scam. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Jul 06, 2010 7:42 pm Post subject: Re: NEW Income Tax 2010 Rules. |
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| Smartsuit wrote: |
There has been much talk about new income tax regulations for foreigners in Korea. Teachers working for private language institutes don't qualify for the 2-year tax exemption new public school teachers qualify for.
Does anybody know what the tax rate would be for a private language institute teacher earning around 2.4m Won per month or around 30m Won per annum? The 2009 rates were between 3%-4%, as far as I know.
Any comments and info would be appreciated as this subject affects all teachers working at legit schools. |
I know this is a strange idea but why not check the tax service directly for your tax rate.
http://www.nts.go.kr/eng/
It is about 1.8% for someone (employee) at that income bracket and no dependents.
If your hakwon is charging more then you are getting screwed cause they are treating you as a "contractor" (or not declaring you at all) and not an employee (meaning you also WON'T get NTS medical or NPS pension).
. |
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SW
Joined: 08 Sep 2009
Location: Korea
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| Posted: Tue Jul 06, 2010 10:28 pm Post subject: |
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New for 2010? Hmmmmm. This is the situation I'm in:
1. I got hired by SMOE in August 2009.
2. I had previously worked in Korea for one year at a hagwon, at which I was taxed.
3. I was told by SMOE that I would not be taxed. I filed the appropriate paperwork. For the past 10 months I have not had taxes withheld from my pay.
4. Two weeks ago I was suddenly informed that "you cannot pay taxes and then be exempt from them" - once you start, you have to keep going.
5. Therefore, I'm going to be slammed with a huge tax bill at the end of the contract.
I will be doing some independent research on this in the next few weeks, that's for sure, but if anyone has any idea of what to make of the above, I'd definitely appreciate it. The most obvious question: if the law is in fact from 2010, would it really apply, ex post facto, to someone hired in 2009?
My girlfriend speculates that I am either exempt from the law and SMOE were too lazy to do enough research to figure this out, or that there is paperwork involved and they are too lazy to do their part of it.
I am not as optimistic as she is. I suspect this will be a (hopefully) final kick to the nuts from the absolute worst employer I have ever worked for. |
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Ramen
Joined: 15 Apr 2008
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| Posted: Tue Jul 06, 2010 10:33 pm Post subject: |
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| My understanding of the PS tax exemption is that if you worked two years in Korea, you are SOL. You gotta pay Korean taxes. |
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shostahoosier
Joined: 14 Apr 2009
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| Posted: Wed Jul 07, 2010 3:26 am Post subject: |
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| yeah but he said he only worked one year. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Wed Jul 07, 2010 5:32 am Post subject: Re: NEW Income Tax 2010 Rules. |
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| Smartsuit wrote: |
There has been much talk about new income tax regulations for foreigners in Korea. Teachers working for private language institutes don't qualify for the 2-year tax exemption new public school teachers qualify for.
Does anybody know what the tax rate would be for a private language institute teacher earning around 2.4m Won per month or around 30m Won per annum? The 2009 rates were between 3%-4%, as far as I know.
Any comments and info would be appreciated as this subject affects all teachers working at legit schools. |
NO. If you paid 3% to 4% at 2.4 million won per month in 2009, you were being cheated (unless you were an independent contractor).
Here is a link to check your monthly withholding:
http://www.nts.go.kr/eng/help/help_52.asp?top_code=H001&sub_code=HS05&ssub_code=HSE2
Try it.
For your 2.4 mil:
Monthly Wage & Salary Income : ￦ 2,400 (in thousands)
The number of Dependents : 1 persons The number of children under 20 : 0 persons
Monthly Income Tax : ￦ 41,740
And that is under 2%.
Someone's prollly bin a cheatin' yeh ... |
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Ramen
Joined: 15 Apr 2008
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| Posted: Wed Jul 07, 2010 4:23 pm Post subject: |
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| shostahoosier wrote: |
| yeah but he said he only worked one year. |
What? Read again.
| Quote: |
1. I got hired by SMOE in August 2009.
2. I had previously worked in Korea for one year at a hagwon, at which I was taxed. |
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shostahoosier
Joined: 14 Apr 2009
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| Posted: Wed Jul 07, 2010 5:14 pm Post subject: |
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| Ramen wrote: |
| shostahoosier wrote: |
| yeah but he said he only worked one year. |
What? Read again.
| Quote: |
1. I got hired by SMOE in August 2009.
2. I had previously worked in Korea for one year at a hagwon, at which I was taxed. |
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No...I suggest you read again. |
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shostahoosier
Joined: 14 Apr 2009
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| Posted: Wed Jul 07, 2010 5:37 pm Post subject: |
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Actually I'll just simplify it for you...
The poster said that they worked for a hagwon for one year.
They began a contract with SMOE in August of 2009 and up until now have not been paying taxes because the school told them they didnt need to.
Now the school is saying they made a mistake and that the poster will have to pay back taxes for the first 10 or so months of their 2009 contract.
If the poster had worked 2 years then your comment would be helpful, but he's only worked 1 year and his (or her) question is if paying taxes that one year disqualifies him from exemption this second year. |
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SW
Joined: 08 Sep 2009
Location: Korea
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| Posted: Wed Jul 07, 2010 8:20 pm Post subject: |
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Cripes! I'm sorry for the confusion.
| shostahoosier wrote: |
Actually I'll just simplify it for you...
The poster said that they worked for a hagwon for one year.
They began a contract with SMOE in August of 2009 and up until now have not been paying taxes because the school told them they didnt need to.
Now the school is saying they made a mistake and that the poster will have to pay back taxes for the first 10 or so months of their 2009 contract.
If the poster had worked 2 years then your comment would be helpful, but he's only worked 1 year and his (or her) question is if paying taxes that one year disqualifies him from exemption this second year. |
Well put, sir or madam.
To further simplify: at the time I got hired by SMOE, I had only worked in Korea for one year. As of NOW, I have been working in Korea for one year and ten months. |
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