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Tax sticky?

 
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Seoulman69



Joined: 14 Dec 2009

PostPosted: Sat Jan 29, 2011 6:51 pm    Post subject: Tax sticky? Reply with quote

With the recent changes to tax for foreigners could we have a sticky for tax related questions?
I have never filed a tax return in my life and don't know the first thing about tax deductions. What is happening regarding the tax changes? Should I use my debit card instead of paying cash? When should I file my tax return?

Can anyone shed some light on this issue?
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wotsit2004



Joined: 17 Sep 2010

PostPosted: Sun Jan 30, 2011 7:15 am    Post subject: Reply with quote

im really confused about the tax exemption that can be claimed by public school teachers. im from the uk, and like many other countries, the uk has a double taxation agreement with korea. i thought this meant that i would not have to pay tax to both countries, but i would have to pay tax to one of the countries. so i thought that if i submit a uk residence certificate, i am liable to paying uk taxes. (american citizens do not have to pay tax when working abroad as long as they earn less than $90000 or so, but i dont think theres a rule like that for british citizens. this means that when american citizens submit a US residence certificate, they may be liable to US taxes, but just dont pay any because theyre not earning more than ~$90000. so it could be different for americans.)

when i checked the UK-korea double taxation agreement online, it said:

Subject to paragraph (2) of this Article, an individual who visits one of the Contracting States for a period not exceeding two years for the purpose of teaching or engaging in research at a university, college, school or other similar educational institution which is recognised as non-profit seeking by the Government of that Contracting State, and who immediately before that visit was a resident of the other Contracting State, shall be taxable only in that other State on any remuneration for such teaching or research for a period not exceeding two years from the date he first visits that State for such purpose.

this looks like i have to pay uk taxes if im exempt from korean taxes. (and uk tax is much higher than korean tax.)

HOWEVER.. when i called the korean national tax service, they told me i would be exempt from paying uk and korean tax, and that if a korean comes to the uk to work in education, theyll also be exempt from both uk and korean tax.if i declare myself a non-resident of the uk, i dont think i will be liable to uk taxes if im out of the country for a full tax year. the korean national tax service advisor told me that the residence certificate just proves that i have been a resident of the uk - not that i still am a resident; and that it whats important; and thats why im not liable to uk tax.

so this seems to be contradictory to what i read in the double taxation agreement. i dont want to be exempt from korean tax if it means i will have to pay uk tax, so im not sure whether or not i should hand in a uk residence certificate to become exempt from korean tax.

can anyone help explain this to me?
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isitts



Joined: 25 Dec 2008
Location: Korea

PostPosted: Mon Jan 31, 2011 8:40 am    Post subject: Re: Tax sticky? Reply with quote

Seoulman69 wrote:
With the recent changes to tax for foreigners could we have a sticky for tax related questions?


There already is a sticky:

http://forums.eslcafe.com/korea/viewtopic.php?t=185469

Though...I'm not sure it answers your specific questions. What recent change in tax for foreigners?

Seoulman69 wrote:
I have never filed a tax return in my life and don't know the first thing about tax deductions. What is happening regarding the tax changes? Should I use my debit card instead of paying cash? When should I file my tax return?


Are you kidding me? Um, I would direct these questions to whomever has been doing your taxes all these years.

What country are you from? If from the US, you have to file by April 15th. Most likely, you'll just be filing a 1040 and a 2555.
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