Korean Job Discussion Forums

[Luciddreamer]

I recently signed up with the Korean IRS to have the 현금영숭종리/cash receipt whenever I purchase things using cash.

How does it work at the end of the year? Is there a system that tracks all of my purchases with cash for the year and I will get a tax deduction at the end of the year? What are the benefits of this?

[pkang0202]

Whenever you pay cash, the business will ask you, or you tell them you want a cash receipt. You give them your alien ID number.

At the end of the year, you can go to the tax website and print out how much money you spent in cash.

The benefits are, if you spend more money in Korea, the higher your tax return. The more "proof" you have that you spent money in Korea (from credit cards, cash receipts, etc...) the more money you get back.

[Luciddreamer]

thanks for your quick response pkang.

I'm also confused with the number you are supposed to input when they prompt you. Some Koreans said that my cell phone number works (cuz they have my cell no. since I signed up on their website). Or, do I have to enter all of my 13 digits of my ARC card?

[laynamarya]

I use my husband's phone number for our cash receipts; I didn't know you could use an ID number for that.

It hardly seems worth it, though...last year we ended up with a refund around 30k.

[pkang0202]

[CrikeyKorea]

I don't know about ARC, but I, myself, having signed up on the website, use my phone number. This year I will get back some decent amount as a tax rebate for having told each place I spend cash my number.

So, yeh, if you have signed up, just use your cell phone number.

[Luciddreamer]

Thanks for the feedback, guys. I appreciate it.


crickey - if you don't mind me asking how much money did you get back at the end of the year (assuming you asked for a cash receipt every time you made purchases with cash) If laynamarya only got 30,000 for the entire year, it's not as important as I thought it was...hah.

[Yaya]

My cash spendings recorded on the tax save cash card exceeded 3 million won last year. That usually helps me get a bigger tax refund.

And purchases for 5,000 won or below aren't worth recording.

[nathanrutledge]

It's not only cash receipts - ANY receipt gets you tax benefits. You register your bank account and then you get a bank statement at the end of the year. The cash card is only for cash purchases. The whole goal is to track spending and try and crack the underground economy.

If you use the tax card and register your bank account, AND spend money like a normal consumer, then you can get some serious savings. If you're saving most of your money though, then the savings aren't that great. If you're here for more than a few years, it's definitely worth it - simply say your phone number when you spend cash, and you will get something back. Why not?

[Luciddreamer]

[Yaya]

[Luciddreamer]

Got it, thank you!

If I make purchases using my debit card, is that recorded and thus can I get a tax refund at the end of the year?

Thank you guys for answering my tedious questions =p

[CrikeyKorea]

I don't know exactly yet, I only sent it in last week. I can tell you the staff at my office were shocked when they saw how much I had spent and hopefully should therefore get back from cash receipts... I will let you know.

[cedarseoul]

Remember, though - there is a minimum threshold for this deduction. I don't recall the specific figure, but the deduction only starts kicking in AFTER the first "X" amount of spending. And then, it's only a percentage of the spending above the threshold.

It's not like you can deduct your purchases, dollar-for-dollar (won-for-won?).

[CrikeyKorea]

it will be automatically worked out with your card purchases assuming that you have set that card up properly. i.e. you need to register your card properly when you make it (or after) so that it will also be deducted