Korean Job Discussion Forums

[Skyblue]

Seriously. Is anyone paying 20-35% income tax in their home countries on the income they're getting from Korea?

Do you report accommodation provided here as income?

Say you were audited, would it be easy for Revenue Canada to figure out that you were earning a salary in the ROK?

It seems an awful shame to just give a whole bunch of money to the government.

[vDroop]

Canada has a tax free treaty with South Korea, so we don't have to as long as we have a legal working visa. (last I checked...)

Please tell me this hasn't changed...

[JD_Tiberius]

Its not tax evasion, its tax avoidance, and its completely legal.

[northway]

The vast majority of developed countries have waivers on taxes earned abroad. The US does, though some states still charge you the state rate. I'm not paying my Massachusetts taxes, and will pay them if I ever actually move back to the state that still claims me as a resident (though I haven't lived there since I became a legal adult).

[youtuber]

As long as you don't have a home or wife in Canada, you are fine.

If not, you are screwed.

[The Happy Warrior]

US Federal has an $82,000 exclusion for income earned abroad. If you're making more than that teaching English, just suck it up and pay the tax already.

[PatrickGHBusan]

[redaxe]

[T-J]

I still pay my property taxes for New York.

[interestedinhanguk]

[machoman]

i'm an idiot, so i have an idiot question. this is my 3rd year teaching here, the 2 year tax exemption was an exemption from paying korean taxes correct? now that it's my 3rd year, i have to pay korean taxes, right? how do i do that? do i need to file anything?

[Skyblue]

[youtuber]

Skyblue,

If you have significant ties to Canada, there is no "avoidance" strategy. If you get audited, you could be on the hook for a lot of money.

Significant ties = property in Canada (house, land, cars), wife or kids in Canada

loose ties = bank accounts, gym memberships, credit cards, magazine subscriptions, health insurance

So, a tax court would look at your ties and determine if you were considered a "resident" or not in Canada while you were in Korea. Many loose ties can cause you to be considered "resident" in Canada.

A good rule of thumb is to sever your ties in Canada and establish new ties in Korea that are parallel to the ones you severed. For example, sever your Canadian credit cards and get some Korean credit cards. Sell you Canadian land and buy Korean land, ect. ect.

The significant ties are the ones that could be trouble for you. You cannot be considered a "non-resident" if you have significant ties in Canada.

I would guess that as long as you have no significant ties, and not many loose ties, a Canadian bank account shouldn't be a problem. Ie no taxes.

[PatrickGHBusan]

Youtuber is right skyblue.

[northway]