Korean Job Discussion Forums

[Alaskaman]

Is it confirmed that we will pay a 15% fixed tax rate for next year.
I have heard conflicting reports, and I can't figure out the details of what are the deductions. I think if this is true we will pay over 300k a month in taxes.

ttopaz(sp) I need you and your facts as you are ususally more informed on these type of things then most.

Thanks again for any and all information about this.

Alaskaman

[nathanrutledge]

http://www.nts.go.kr/eng/index.asp

Go here and do some research.

As far as I can tell, the rule is that foreigners before could opt

1) pay the regular Korean tax on 70% of their income, the other 30% was tax free.

OR

2) pay a flat 15% rate on everything.

Now, this was a good system for everyone because those who made a little money chose option 1 and those who made a lot chose option 2.

NOW, the rule is that you have to pay 15% on everything OR you just pay the standard Korean tax.

The tax system here is tiered, just like the US (and others, i'm sure), so if you make a lot, you pay a higher rate, and if you don't, then you pay a smaller rate.

You're not going to see your rate jump from the 1.5-2% you're paying to 15%. That's not what's happening, as far as I can tell.

BUT, check out the site, see what it has to say.

[ttompatz]

^^^ what he said.

Tax rates are tiered for employees.
The more you make the higher the tax bracket you are in.

There are deductions for dependents, spending on your Korean credit card, etc.

By and large it won't make much difference to your typical E2 teacher earning less than 30m per year.

.