Korean Job Discussion Forums

[giraffe]

I have a few questions and hopefully someone can answer. I wasn't sure if i should post in Off topic or general discussion as this does have something to do with living in Korea..

My wife is Korean , I'm Canadian. We met in Canada, I've never lived in Korea other than going to Korea the last 4 or 5 years for 1-3 months every year. So i guess I've "lived" in Korea for at least a year if you add it up. Anyways that doesn't matter. My wife and I are planning to possibly move to Korea IF I can still work doing what I do now.

I'm a freelancer in the movie/commercial business Soo even though i live in Canada All my clients actually come from The USA/UK. I'm hoping if i move to Korea I can keep some of my clients and possibly find some new ones in Korea.

Here are my questions.

1. Spousal F2 visa. Can I apply for that in Canada at the Korean consulate/ embassy? or is this strictly done from Korea? Anything i should know?

2. alien registration card ( ARC) I assume even though I'm not an English teacher i would need to apply for an ARC card? Just need to fill in paperwork and wait? No need for medical right? Medicals are just for English teachers/ foreign company workers to get the visa?

3. If i live in Korea and i Freelance for people in the USA. Is it possible for me to pay taxes in Korea? and not pay them in Canada ( taxes are high in Canada =p) What would I need to do? Sell everything i own, cancel drivers license , health card , bank accounts in Canada to not pay taxes there?? Is it possible for me to keep bank account in Canada and receive all my payments in Canada and still not pay taxes in Canada? OR would i have to receive work payments in Korea? Could anyone who shed some light on this?

4. My wife has a PR card in Canada. I know she has to live 2 out of 5 years in Canada to keep it. Does that mean if we live in Canada for 2 years now and then we move to Korea for 3 years , We can renew her PR card from Korea which will give her 5 more years in Canada? Which means we could live an other 3 years in Korea and the move back to Canada for the last 2 years of those 5 years? Does this make any sense? Or the only way to renew PR card is to come back to Canada right before the first 5 years expire?

5. What if we let her PR card expire? Is it a huge problem to get it back if I've been living in Korea for some years? Or because she was already approved once it would make it easier / be cheaper to get it the second time around? Anyone have any experience in this?

I think that's about all i can think of at the moment. I would greatly appreciate any input from anyone who dealt with any similar situations.
Maybe captaincorea or patrickbusan can help out? I've not definite plans to move to Korea. I'm just trying to figure things out before we decide anything. Just to see whats possible. I've no plans whatsoever to ever teach English in Korea. The main factor that will help us decide whether we move to Korea or not is if I can work in my field.

looking forward to reading serious input.

[ttompatz]

[giraffe]

thanks for the reply...
Seems to be pretty straight forward.

I'm still iffy about the Tax stuff though. My taxes in Canada are more complicated then a typical person. Closer to a small business. I do get a lot of advantages for doing taxes in Canada though like writing off ALL my business expenses and pretty much any electronic toys i buy. Ill have to look into it some more.

[TheUrbanMyth]

[Captain Corea]

Yeah, that's the tricky part. Where exactly is he making the money? The money is being transferred to Canada, but it is actually being made wherever he lives. He could simply set up an account in any country (the US?) and transfer funds whenever he likes.

[ttompatz]

[giraffe]

opps i miss some of your responses.

To clear up any confusion, I live and work in Canada but my clients are in the USA. My income is comes from USA wired transfered to my canadian bank account. right I 100% report all my wages to revenu canada. I pay taxes incanada. I suppose if i wanted to hide income from Canadian gov i could however if i were to get audited it wouldnt take to long to figure out im hinding income.

Anyways. What im really wondering is if i move to korea on an F2 visa, keep my canadian bank account, freelance from korea for the same USA clients. Where would i need to pay taxes? The income is clearly not "canadian" its not koreans either. I wouldnt be using the services incanada But iwould be living in Korea. HOWEVER most of that money would never set foot in korea anyways.... YOu can see why im a little confused here =p. Is it possible i dont any to pay taxes anywhere? to me if i live in korea i should pay taxes in korea. I dont mind. Much better than paying taxes incanada.

Also Ihave some rsp's in canada too. What do i do with those if i were to come to korea? Its one of the reasons why i would want to keep my bank account in Canada as theres money coming of it every month and going into my rsp..... or would having an rsp setup like that forces me to pay taxes in canada?

Bah....kinda tricky... Inthe end i just dont want to pay taxes in canada if im going to live and work from korea. just doesnt make sense.

[Devil's Harvest]

I can't say I know exactly what to do about your RSP's, as the Canada Revenue Agency seems to deal with expat's situations on a case by case basis, rather than having a strict set of conditions determining residential status. Generally, I know that having a Canadian bank account is not necessarily a major residential tie; maybe RSP's won't be considered so as well. You might have to make some calls to CRA officials on that one.

As far as taxes go, you always have to pay taxes somewhere. If you get an F-2 visa and are in Korea for more than half of a calendar year, then as far as the CRA is concerned you are considered a legal resident of Korea. The Korean National Tax Service will expect you to pay taxes to them on your world income, and as a resident of Korea who pays world income taxes to Korea, you will very likely be exempted from paying income tax to the CRA unless you have significant ties like property (house/condo). You can get a credit for the taxes you paid in South Korea if the CRA determines that you are also responsible for paying some tax to Canada.

You should take a look at the tax rates of both countries. South Korea's tax rate is lower than Canada's. If you move here and tell your American clients to send payment to your Korean bank account, you may reap some benefit of paying lower income tax.

[giraffe]

Devil's Harvest,

Thanks for the info. I need to call CRA / ask my mom ( shes accountant that does my taxes).

I also need to figure out how taxes work in Korea and which "category" I fit into and how much % of income tax i would need to pay in Korea. Does Korea have a "self employed" tax benefits such as writing off business expenses? In Canada My taxes aren't exactly considered as Individual nor is it considered a "business".

Here's some info I've found on several websites about income tax. Most websites seem to say if i live in Korea for more than a year I NEEED to pay taxes in Korea for any domestic and or global income wether I'm a Non resident or resident of the country. And these are the income tax brakets.

Tax base of global income


Tax rates

0-10 millions Won = 8%

10-40 million Won = 0.8 million Won + 17% of the amount exceeding 10 million Won

40-80 million Won = 5.9 million Won + 26% of the amount exceeding 40 million Won

over 80 million Won = 16.3 million Won + 35% of the amount exceeding 80 million Won


Are these accurate? I always thought the tax rate for English teachers on a typical 2 million/month salary was only something like 3.3%?? Maybe its a special tax rate ONLY for english teachers? ALthough, My korean wife used to teach in a Hagwon and Made 2.4 million a month and her tax rate was extremely low close to 3.3%. Maybe the domestic income is taxed differently than GLobal income? Sucks if it works that way...


Anyways, based on the above figures, I would be in the Over 80 million Won and would have to pay 16.3 million won + 35% 0_o. Maybe paying taxes in Canada would be better, As I can write off many things as business expenses. AHH Boo.. Ineed to figure this out !

[PatrickGHBusan]

Hey Giraffe,

The tax issue is linked to your residency status.

Your residency status for tax purposes in Canada is determined by the links you have to Canada. The more ties you have to Canada, the more chance Revenue Canada deems you a resident and demands income tax on your Korean income.

Ties include: bank accounts, credit cards, drivers liscence, medical card, a house, investments, RSSPs, a car.

If you earn any revenue in Canada, say by workign for Canadian clients from Korea then that can be considered taxable income.

What will happen is that CRA will apply income tax on your foreign income based on the income tax bracket your salary would fall in. They will then compare the income tax you paid in Korea and deduct the difference.

The only sure way to know about your status is to fill out a residency form (on the CRA and Immigration site) and send that in. The CRA will then determine your status. If they feel you have no ties to Canada or few ties, they can deem you a non resident and you are clear of CDN income tax.

Note that one of the key issues with residency is intent to return. If your file shows intent to return to Canada after a short periond (1-2 years) that can push you into the resident category.

Also you will be unable to deduct any business expenses you incur from your canadian taxes unless you actually pay canadian taxes.


As for the visa issue, if your wife is still a Korean citizen then you will be eligible for an F-2 visa. Your kids (if you have any) will be on F3 visas.

You can then work in your field if you can find work locally or you can try to work on contract like you seem to do now. You seem to have a portable career so that would be doable.

Things to know when comparing Korea to Canada when it comes to expenses and life style:

Accomodations can be expensive. If you work by contract it means you and your spouse have to find your own place. Note that places in Korea are much smaller than they are in Canada (typically) and that in most cities, appartments are expensive and require a hefty key money deposit or monthly rent along with a smaller deposit.

As a contract worker you get no work provided accomodations.

I do not know what your living situation is like in Canada but if you have kids, get ready for cramped quarters! This is not that bad but its an adjustment.

School will cost more than it does in Canada if you have kids. You can send them to regular Korean school for a cheaper option but international schools cost a lot.

Medical coverage will be needed and if you work by contract you will need to buy your own insurance to cover your family.

Your wife can possibly work but if she has been away from Korea and is a bit older (say over 30) she may have a hard time finding work initially and her hours may be heavy.

Daycares are available but cost money as well.

Just be sure to really sit down and add up all the expenses in a realistic manner as you can be surprised at what you find out!

Expenses in your case mean tickets, moving costs, possible storage of some of your belongings while you live in Korea.

As a final note, visiting Korea and living there are two completely different things!

As a tourist visiting your in-laws you are on vacation and there for a set period.

Living and working in Korea is a different proposition!

Do you speak Korean?

That will have an impact on your chances of finding local work in your field.

All this being said, living in Korea can be a great experience, I sure loved it and stayed there from 1997 to 2008.

Good luck!

Where abouts are you from in Canada anyway?

[giraffe]

Patrick,

Thanks for the Reply,

To get back to you/answer a few questions.

-As for taxes issue. I really wonder What I should do. I've no issue cancelling my credit cards and possibly my drivers license as I will most likely apply for one in korea. However Would I need to cancel my medical card and bank accounts to make sure i cut off ties? I'd stil like to keep my rssp's and canadian bank accounts. I dont own a car, i dont own property ect.. I'm not worried about canadian income because I actually HAVE 0 canadian Income. It all comes from USA. THe best case scenario would be to move to korea and just start paying taxes there. WHat I dont know about korea is if im self employed in korea are there any tax benefits? CAn you do write off with korean gov as a resident with global income? Do business write off exists for self employment in korea??

-I'm living Toronto Right now

-I understand korean ALOT more than I speak. Definitely not enough to have a job and function in korean 100%. Soo hopefully if i move to korea Ill learn the language to fluency.

- We have no Kids. We dont plan to have any kids until shes probably around 30 years old. We have 4 years =p...

- Were close to our Mid 20's. Shes 26 years old and I just turned 27 =p. My wife is under 30 So I don't think there's any problem for her to find work. We just got married younger than most people on these forums i guess. Chances are She will probably go work in a Hagwon and teach privates for extra cash. She was making pretty decent money actually. Slightly more than what a typical english teacher makes ( one who doesn't do privates or anything extra outside their typical contract) but minus the housing allowance. Perfect job actually, its part time, decent money , and gives her time to do other things.

- As for apt's I'm well aware of the sizes. I've seen many living situations in korea. From Family apt to officetels to country side houses. I actually like korean apartment sizes. I never liked huge apartments or big houses. A big reason for moving to korea is to save money. IF and when we move to korea We'll probably be living with my parents in law for a year or 2 to save money! Even if i make a decent salary here in Canada , living in toronto is Damn expensive. My wife has no job soo i have to support both of us and The expenses pile up. Having been on my own since im 17years old I havent had the luxury of living at my parents house or having housing expenses paid for =p while saving money for a few years ( as many people i know have done that and easily put a downpayment on a condo/houses here) I cant complain though, I've got no debts at all but I'm just not saving much money. I also dont smoke, I dont party , i dont drink, no drug , i dont own a car, we dont even pay for Transit as we walk to most places. I certainly dont have an expensive life style The main reasons i dont save money in Toronto is because of Rent , having to support my wife 100% , putting money into rsp and investing into my selfemployment + taxes here are killing me!!!

We live in a small 1 bedroom apt in downtown toronto. Its TINY!!! I'm looking forward to living with my inlaws in their 4 bedroom apt. =p. Which means we wont have to pay bills, rent or food. However We plan on giving a decent sum of money to her parents everymonth to help out ( even though they said they dont want Us to).

-If we do move to korea, Moving costs will be minimal. Were probably going to sell most of our stuff and the rest I will store at my parents place. PLane tickets shouldnt be too expensive as I assume We can just buy 2 One way tickets? IN korea , the only thing were going to have to buy is a desktop computer for myself to be able to work!

- My priority wouldnt be to find local work. I'd keep doing my freelance work. Maybe make some extra cash on the side where i Can if i have time. I have a few contacts in the USA who knows people in korea working in commercials/movies Soo Hopefully i can get some new clients in korea aswell.

Anyways , All I know is that there's soo many advantages for me to move to Korea as I don't have any ties in Toronto right now. Theres no reason for me to be here. Theres no reason for me to spend soo much money living in Canada when We could just move in Korea and Save more money. We know we can save a lot more living in Korea than Canada. There's also no where else in Canada wed like to live so I'm just trying to figure out how to everything would work if We were to move there. Lots of stuff to figure out but i suppose we wont know 100% until we actually go there.

[PatrickGHBusan]

Well giraffe you plan sounds solid to me.

You are well prepared. Best of luck!

As for the taxation issue and deductions, you should consult a tax accountant to get factual answers.

The ticket issue: your wife can certainly buy a one way ticket if she is a Korean citizen.

However is your wife a permanent resident of Canada? If so she can lose or residency if she stays abroad for for a set period of time. It will not be cancelled but it will be suspended (potentially) I would put it on your list to call immigration and ask about this.

As for you, a one way ticket may not do even on a F2 visa. Contact K-immi or visit the local K-embassy to find out.

[giraffe]

Thanks patrick,

-Yeah, Ill need to consult an accountant!

- Yes my wife is Korean citizen , She has a korean passport. She's also permanent resident of Canada. ONly been in Canada for a bit over a year. I know that you need to live in Canada at least 2 years out of 5 years to keep /renew the PR.. Do you know what happens if she doesnt comply with the 2 out 5 years ? Lets say We move to korea next year and dont come back until after her PR expires? Does that mean we have to start all over again with the PR application or its somehow just suspended and We need to reactivate it? What if we come back Right before it expires and didnt complete the full 2 year? Would be it the same, it would be suspended and or cancelled and would have to apply like new?? LIke you said I might just have to call immigration. But sometimes not everyone you talk too knows 100% and just tells you false info sometimes .. kinda frustrating. Then you come back to find out what the immigration person said isnt true =p.

-Too bad i might not be able to buy a one way ticket. BOO ill have to look into it. WOuld i need to buy an open ended ticket ? or would i need to set a specific date and then not come back at all and loose the ticket?


Anyways We'll see if we actually move there. We'll see how it goes the next few months!

[PatrickGHBusan]