Korean Job Discussion Forums

[laurita28]

Hi

I'm a UK citizen and have been teaching in Asia since 2006 and paying tax at source. When I was at my last school - a public school, I was told I HAD to sign a double-tax form, and as I thought I might be returning to the UK at the end of that contract anyway, I didn't think too much about it.

After a while, though, I knew I would not be returning to the UK and should be paying tax in Korea. I tried to get the school to tax me but they wouldn't. They told me that it was 'impossible'. I doubted this and pressed further, and they told me that actually it was possible but I would have to go in person a month after my contract ended - not really an option for me, especially as they couldn't tell me how much I was likely to have to pay (on a standard 2.1 mill contract.)

After leaving, I spoke to an accountant who confirmed what I suspected, telling me that the Korean double taxation form is not relevant to my circumstances and should not have been signed.

I know it's a long shot and I'm pretty much resigned to paying the taxes in the UK, but if anyone has any advice on how to avoid that, I'd be happy to hear it. (I did look at the Korean tax office website and the thread on here, but couldn't find anything directly relating to my circumstances - apologies if I missed anything that did.)

Cheers

[Malislamusrex]

I worked as an accountant for 3 years.

which accountant did you talk to? I don't know what kind of tax your accountant thinks you should be paying... maybe mystery tax.

The only way you can get taxed is if you send cash from one country to another, (UK GOVERNMENT CAN'T charge you income tax) send your cash over, say you won it gambling, or even better don't claim it at all... you will be fine.

[laurita28]

I think what the accountant meant was that as I had completed the double-taxation form, my tax status in the UK would switch from being 'non-resident' to 'resident' again, and that I would be asked to file to to pay UK tax on my earnings for that year (from that public school contract). He said that the double-taxation form should not have been signed. However it was, and I paid no tax in Korea.

What I want to know is if there is some way I can pay what I should've paid in Korea to the Korean tax office, so everything is above board - this is the tax the accountant is refering to.

[Setaro]

How will will the tax office back home know about your foreign earnings unless you tell them?

Or just go to another EU country until the UK tax year is over then it doesn't matter either does it?

[laurita28]

Don't the schools send copies of the double-taxation form to the UK tax office? That's why I'm thinking the Inland Revenue would be aware of my resident status.

Ideally I want to pay as little tax as possible, but I don't want to get done for evasion either.

[Setaro]

Hmmm I wouldn't count on the Korean tax office having sent anything; I had to explain 1000 times that I wasn't American and therefore didn't have a US Tax residence certificate. I told them to just charge me Korean tax but as far as I know I've not had it deducted each month.

I know some people have been hit with a tax bill at the end of their contracts, because they haven't been paying monthly. So I would assume it IS possible to pay tax in Korea as one lump sum at the end.

[Malislamusrex]

No.

If you don't claim it, you wont pay any tax. Don't mention it when you get home.

[Malislamusrex]

Technically for the first or second year you should. If you want to go home and claim that to the tax office by all means do so.

[Malislamusrex]

Let me clarify, that if you don't declare yourself a UK national you don't have to pay tax. If you declare yourself a non resident you are completely exempt from tax for 2 years.

After those 2 years you should be paying tax to the Korean government, if they have decided not to tax you... that is the Korean government's administrative error and not yours, if you feel obliged to flag them on this you should.

But if your accountant is telling you the UK government has a claim to the income you made in Korea after two years..... let me know, because I'm 95% sure he doesn't know what he is talking about.