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marsavalanche
Joined: 27 Aug 2010
Location: where pretty lies perish
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 Posted: Sun Jan 16, 2011 7:15 pm Post subject: 5% tax rate |
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I'm currently interested in a job, but the main thing I don't like about it is a 5% tax rate they are charging teachers. I know this is too high, but any tips on renegotiating that to getting it to where it should be?
Also could someone please post that website where you calculate your LEGAL tax rate? Thank you. |
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jrwhite82
Joined: 22 May 2010
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| Posted: Sun Jan 16, 2011 7:26 pm Post subject: |
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Hey mars, I know you've been looking for a job for a while. Have you negotiated on this contract already and they are refusing to change the tax rate? If that is the case, what they are doing is somewhat illegal and they are basically stealing money from you and not being honest. Which is frustrating, because that is what, your third offer?
Or do you want advice on how to ask them to change it? What I would do, is tell them you had a friend from university who works/worked in Korea look at your contract and he noticed that the tax rate seemed off and ask them to correct it to the right amount. If they balk, pass. Most likely they will change it if you reference the website.
Also remember that tax, pension and healthcare are all deducted from your salary. So the 2.2% is only for the tax.
http://www.nts.go.kr/eng/help/help_53.asp?top_code=H001&sub_code=HS05&ssub_code=HSE3 |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Sun Jan 16, 2011 7:27 pm Post subject: Re: 5% tax rate |
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| marsavalanche wrote: |
I'm currently interested in a job, but the main thing I don't like about it is a 5% tax rate they are charging teachers. I know this is too high, but any tips on renegotiating that to getting it to where it should be?
Also could someone please post that website where you calculate your LEGAL tax rate? Thank you. |
The National Tax Service:
http://www.nts.go.kr/eng/
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marsavalanche
Joined: 27 Aug 2010
Location: where pretty lies perish
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| Posted: Sun Jan 16, 2011 9:12 pm Post subject: |
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| jrwhite82 wrote: |
Hey mars, I know you've been looking for a job for a while. Have you negotiated on this contract already and they are refusing to change the tax rate? If that is the case, what they are doing is somewhat illegal and they are basically stealing money from you and not being honest. Which is frustrating, because that is what, your third offer?
Or do you want advice on how to ask them to change it? What I would do, is tell them you had a friend from university who works/worked in Korea look at your contract and he noticed that the tax rate seemed off and ask them to correct it to the right amount. If they balk, pass. Most likely they will change it if you reference the website.
Also remember that tax, pension and healthcare are all deducted from your salary. So the 2.2% is only for the tax.
http://www.nts.go.kr/eng/help/help_53.asp?top_code=H001&sub_code=HS05&ssub_code=HSE3 |
Hey. It's the same job with that tax rate.
This is what they sent me. Is this legit?
=======================
KOREA TAX INFORMATION
Date Modified: 10.27.2005
Content: South Korea Taxes - Information on taxes in Korea
PLEASE READ: These are TAX BASICS. This information is here to give you a general idea of the tax situation in Korea. This is not a definitive guide and is generalized for the majority of teachers/expats dealing with the tax system in Korea. If you need more information please visit the Korea National Tax Service. Once you are in Korea please contact your local tax office for the latest and most reliable tax information. If you are having problems with your employer, the tax bureau or the government it might be wise to contact local, professional help as soon as possible.
Korea Tax Facts - The Basics
Korean Tax Year
June 1 � May 31
Korean Tax Rates
5% - 10% depending on marital status
Korean taxpayer classifications
(a)Resident: A person who has had a domicile in Korea for one year or more. Someone who has a job that requires them to live in Korea for a year or more is considered to have a domicile.
-A resident is subject to being taxed from sources within and outside of Korea.
(b)Non-Resident: A person who is not a Resident of Korea.
-A Non-Resident is only subject to income tax on income made within Korea.
Most foreign teachers fall into this category
Filing Tax Returns
It�s employer�s responsibility to complete year-end tax settlement in January
-Employers usually file for their employees, but if not, employees must file themselves or will be penalized
-Refer to the English-language income tax guide for foreigners - available at any tax office � for assistance
-Returns must be filed to with the District Tax Office that has jurisdiction over your residence.
Some Necessary Documentation for Filing
-Alien Registration Card � the number on this card must be used on every tax-related document
-Report of Exemption & Deduction From Wage & Salary Income
-Some other forms of documentation: (depending on purchases) Copy of Receipt for Medical Expenses, Copy of Receipt for Education Expenses, etc.
Taxing wages
Most foreign employees are required to pay Korean income tax
-Taxes are usually deducted from employee�s paycheck and paid by employer
-Taxes may be deducted for National Pension, Medical Insurance and the Simplified Tax Withholding. If they are, ask for official proof of your membership to each.
*Foreign teachers employed at universities or other recognized institutions may be exempt from paying taxes for two years according to Article 20 of the Korean Tax Code. Teachers from Canada are not covered by exemption.*
-Contact Korean Tax Office in Seoul (82 (2) 720-4793 or 720-4222) for more information
MORE INFORMATION
National Tax Service - http://www.nts.go.kr/eng/
EFL-Law - http://www.efl-law.com
Also
The second issue we can state clearly here is the calculation of monthly Income tax deductions if you do not fall into
(a) above, and thus Simplified Tax Withholding will apply to Hagwon teachers and teachers in private industry. The monthly Simplified Tax Withholding deductions can be viewed here. Your deductions, pursuant to taxation regulations, are that for salary earners. The Income Taxation Commissioner advises that some school owners incorrectly deduct Taxation based upon a belief the teacher employee comes within the Business Income taxation deduction, which is a flat 3%.
C
We have provided a two worked examples, based upon the following facts for your reference: In Example A, the teacher is working in a hagwon and is earning 2,000,000 a month gross. The hypothetical teacher is single, has no dependents, and is paying 4.5% National Pension Deduction. In this example, in which 'Simplified Taxation Withholding ' pursuant to the scale is deducted, the teacher will have a further Income Tax liability at the end of his one year contract and have to pay a further 126,180 Won out of the final pay. (Plus Income Tax on his final severance pay )
Taken from http://efl-law.com/tax.php |
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nathanrutledge
Joined: 01 May 2008
Location: Marakesh
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marsavalanche
Joined: 27 Aug 2010
Location: where pretty lies perish
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| Posted: Sun Jan 16, 2011 11:02 pm Post subject: |
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| nathanrutledge wrote: |
http://www.nts.go.kr/eng/help/help_53.asp?top_code=H001&sub_code=HS05&ssub_code=HSE3
Fill it in, that's what you'll pay. |
I'm confused do I put in my month wage or yearly wage?
Monthly wage (2.3 million) comes out to 34,500.
Is this the correct tax rate? |
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nathanrutledge
Joined: 01 May 2008
Location: Marakesh
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| Posted: Sun Jan 16, 2011 11:33 pm Post subject: |
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| marsavalanche wrote: |
| nathanrutledge wrote: |
http://www.nts.go.kr/eng/help/help_53.asp?top_code=H001&sub_code=HS05&ssub_code=HSE3
Fill it in, that's what you'll pay. |
I'm confused do I put in my month wage or yearly wage?
Monthly wage (2.3 million) comes out to 34,500.
Is this the correct tax rate? |
Yeah, or multiply 2.3*12 and enter that. Either way, I make around that and that's close to my withheld taxes. |
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venus envy
Joined: 25 Jul 2007
Location: chicago
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| Posted: Mon Jan 17, 2011 1:59 am Post subject: |
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| Should we include a monthly housing allowance if we are given one? *tia* |
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caribmon
Joined: 26 Oct 2009
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| Posted: Mon Jan 17, 2011 2:20 am Post subject: |
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| put in 2.3*13 as your income |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Mon Jan 17, 2011 2:28 am Post subject: |
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| venus envy wrote: |
| Should we include a monthly housing allowance if we are given one? *tia* |
Yes, it is considered to be taxable income.
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nathanrutledge
Joined: 01 May 2008
Location: Marakesh
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| Posted: Mon Jan 17, 2011 4:39 pm Post subject: |
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| ttompatz wrote: |
| venus envy wrote: |
| Should we include a monthly housing allowance if we are given one? *tia* |
Yes, it is considered to be taxable income.
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But DON'T count it if it's provided housing. |
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