Korean Job Discussion Forums

jdog2050 · Joined: 17 Dec 2006

Uh...so apparently something changed in the housing laws last year, my last school forgot to make the change, and this year I'm paying 900,000W in taxes? I've never had to pay this much tax in Korea and it's infuriating. A friend of mine had to pay 2,000,000. What the hell is going on?

tokkibunni8 · Joined: 13 Nov 2009

I paid over 900k for the year hoping to get a good chunk back, but NOPE! A whole whopping 43k back. I called bull**** on that, but what can I do?

Jerry Todd · Joined: 15 Apr 2009

the last 2 years taxes were deducted from salary and near the end of each contract i got a large portion back.

this year, i apparently have to pay 750,000. apparently, not taxes were taken off my monthly salary.

btw, i'm canadian and i thought we had a tax treaty with south korea. meaning that you would pax taxes, but get a large portion back upon completion of a contract.

Lastrova · Joined: 30 Dec 2010

I'm paying an extra 600,000 Won. Last year, there were several months where I wasn't getting taxed at all. I asked the office admin, but they said "don't worry!" Yeesh.

oldfatfarang · Joined: 19 May 2005 Location: On the road to somewhere.

I just got whacked 751,000 on my final pay. Ouch!

Good luck.

lifeinkorea · Joined: 24 Jan 2009 Location: somewhere in China

900 = 75/month = 3.5 percent of a 2.1 million won salary

I don't see the problem. Based on the following site, it says 5-10% http://www.eslelite.com/biz/info_korea_Income%20Tax.htm

Ramen · Joined: 15 Apr 2008

i love taxes. i paid about 2 million in taxes last year and just found out i have to pay about 500K more. love it!!!! Razz

nathanrutledge · Joined: 01 May 2008 Location: Marakesh

There was a change in the way housing and airfare are calculated. Before, they were not taxed. Now, they are considered part of your pay, and you're taxed on them. That being said, I'd only pay tax on another 400k a month (or whatever the housing allowance is), and the tax rate is not 5-10%, it's between 2-3% (unless you're making serious money, which none of us are). Thus, on 5.8 mil won (assuming 400k per month, plus 1 mil total for airfare), you should be paying 116,000 - 174,000.

So, to expand the example if you make 2.0, you should be paying 596-894k a year. If you're pulling in 2.5, you should be paying 716-1,074k per year.

In conclusion, OP, it sounds like you have to pay ALL of your taxes in one lump sum.

If you're interested, go to the National Tax Service website and do some research. There is a handy tax calculator and lots of explanations in fairly coherent English. www.nts.go.kr

OculisOrbis · Joined: 17 Jul 2006

nukeday · Joined: 13 May 2010

My school came up asking me for any credit card receipts. What? Should I be keeping a receipt for every time I use my KEB Visa check card?

Ramen · Joined: 15 Apr 2008

jdog2050 · Joined: 17 Dec 2006

Ramen · Joined: 15 Apr 2008

Andyc24_uk · Joined: 21 May 2007

The problem is that there are 2 ways of calculating tax - you can opt for a flat 15% (which is entirely pointless unless you're earning several hundred million won a year) or regular taxation. For some people, year-end taxes have been wrongly calculated using the 15% method, which throws up numbers of several million won - Employers then panic because you've only been paying about 80,000 a month (correctly, at the lower rate) - and they then demand the difference.

Most employers have probably just screwed up; a handful are doubtless doing it deliberately and pocketing the difference. If you're affected by this, use the link a couple of posts above. Type in all your income for the past year. If you've not completed a full year yet, only enter the amount you've actually received so far - don't worry about future earnings. Unless you have kids or investments in Korea, you probably don't qualify for most of the allowances, so don't sweat it too much if you don't understand them all. Try both methods and look at the difference.

Then print off the whole thing, with the lower amount, and either show it to your employer or, if they won't play ball, take it to the tax office, ideally with a Korean friend for translation help. Chances are you'll only have to pay an extra 150,000 or so - some people may even get a rebate if they've overpaid.

NYC_Gal 2.0 · Joined: 10 Dec 2010

My school asked me for my credit card receipts as well. I only use American cards, so told them that I could order the reports, but it would take a few months because the credit card companies in America aren't accustomed to this, and are very busy so it would take time.

They said forget about it Wink

Why do they ask for receipts, by the way? They didn't ask me last year.

EDIT: I'm only in my second year, so I don't have to pay taxes yet.