Korean Job Discussion Forums

[Koreanbear]

Hi everyone,

I have been an EPIK teacher for 12 months (arrived Feb 2010 and leave in a few weeks). I have not paid a penny in Korean tax here (although I have paid pension and insurance).

I don't hold and I haven't even heard of a Residency Certificate for British citizens.

Obviously I want to avoid paying tax if at all possible.

I was under the impression that in the first 2 years of working in Korea, that I don't have to pay any tax at all. This morning, I have been told by my co-teacher that I must pay around 240,000W to the Korean tax office.

Having done some research, it seems that I need to decide to pay tax in Korea or the UK. Based on the rate of task, it's a no brainer, I'd rather pay tax in Korea as the rate is so much cheaper. However, I am confused as to how the UK Tax office can tax me on the money I have earned in Korea. Just how would they tax me?!

So, anyway to cut a long story short - do I pay 240,000W now or pay nothing and hope that the UK tax office don't catch on...? My school seem insistent that I must pay now as the admin lady went to the tax office yesterday and said I must pay.... contrary to what I was told initially by EPIK when I first came to Korea!

[Koreanbear]

ps - what if I don't pay anything in Korea and just leave and don't tell anyone in the UK ? Is that fraud or is that fine?

[Setaro]

Do you mean 240,000W or 2,400,000W, cos 240,000 for a years taxes seems wrong.

Regarding back home, unless you actually tell the tax office, I don't see how they would even know where you've been.

The Residency Certificate is a thing Americans can get that proves they pay taxes back in the US so can avoid paying taxes here. It doesn't exist for Brits. Either you get lucky and a guy at the korean tax office knows this and waves any need to pay taxes, or you can just pay the pittance that is Korean tax. I actually requested to my co-teacher to be taxed here to avoid any confusion down the road. Whether I have been or not I don't know.

Mostly all this tax business is for the Americans and Canadians, both get taxed on foreign earnings. As far as I know, Americans can choose whether to pay tax here or the in the US (again, a no brainer), whereas Canadians have to pay taxes back to Canada always, but can get the free 2 years in Korea so don't get double taxed at least.

The tax situation is different for every nationality, but Brits seem to have the most confusing time because all the available info is for North Americans. But anyway, if it's really just 240,000W that's only about �130 just pay it and get a piece of paper that proves you paid it, then there's no way anyone can tax you in England too...surely...

[Rachel2003]

[Hotpants]

For the UK, you don't have to pay any income tax to Her Majesty's government if you are working with a non-UK employer overseas. You will still have to pay tax on things like your UK savings account interest payments while away, though.

Although I've never been questioned by HMRC in the 10 years or so that I have worked overseas, I still nonetheless keep any salary and tax-related paperwork for the record just in case.

[Darkeru]