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zoeksk
Joined: 21 Jan 2012
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 Posted: Wed Feb 08, 2012 6:35 am Post subject: Income Tax in Korea and back home? |
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I just got a contract through that states that they will be taking 5% tax out of my wage before I see it, which is fine except I'm sure I read somewhere that tax is 1.3/1.5? Or maybe it was wishful thinking on my part. The thing is now I go to check I find sites saying between 2 and 7% is normal, but surely there is a fixed rate for everyone?
Also if I tell the English tax office I'm leaving the country I can claim back the tax I paid this year (according to a very old relative who may also have been imagining it) so does this mean while I'm in Korea they dont get any tax or NI from me?
One last question: Do I repay my student loan whilst in Korea, I know you dont have to pay if your not making over �15,000 a year but not sure how that applys to jobs out of the country as they are supposed to take it automatically from my paychecks.
Thanks in advance and I'm sorry if the questions seem stupid, I just got confused and thought it would be better to speak to people who have done this before  |
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morrisonhotel
Joined: 18 Jul 2009
Location: Gyeonggi-do
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| Posted: Wed Feb 08, 2012 6:43 am Post subject: Re: Income Tax in Korea and back home? |
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| zoeksk wrote: |
I just got a contract through that states that they will be taking 5% tax out of my wage before I see it, which is fine except I'm sure I read somewhere that tax is 1.3/1.5? Or maybe it was wishful thinking on my part. The thing is now I go to check I find sites saying between 2 and 7% is normal, but surely there is a fixed rate for everyone?
1.6% is about the right rate assuming you're earning 2.0m-ish a month. There is a government website that has the relevant percentages and amounts being removed from your salary for tax. Check the contract sticky above for the link to the site.
Also if I tell the English tax office I'm leaving the country I can claim back the tax I paid this year (according to a very old relative who may also have been imagining it) so does this mean while I'm in Korea they dont get any tax or NI from me?
Yes, it is possible to reclaim some of the tax. You'll need to leave the country before the end of the tax year to do so or stop working before then. You don't pay tax in the UK whilst you're working abroad. You can, however, make voluntary contributions.
One last question: Do I repay my student loan whilst in Korea, I know you dont have to pay if your not making over �15,000 a year but not sure how that applys to jobs out of the country as they are supposed to take it automatically from my paychecks.
Yes. The threshold of 15,000 is only true in the UK. There are different thresholds for different countries. The threshold in Korea is only about 9,000 a year so you'll have to pay it back. You'll be paying about 30 - 35 quid a month on a monthly salary of 2.0m-ish. Obviously that goes up the more you earn
Thanks in advance and I'm sorry if the questions seem stupid, I just got confused and thought it would be better to speak to people who have done this before |
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nate1983
Joined: 30 Mar 2008
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zoeksk
Joined: 21 Jan 2012
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| Posted: Wed Feb 08, 2012 9:01 am Post subject: |
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Thanks thats really helpful, and much faster than I expected too  |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Wed Feb 08, 2012 3:48 pm Post subject: Re: Income Tax in Korea and back home? |
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| zoeksk wrote: |
I just got a contract through that states that they will be taking 5% tax out of my wage before I see it, which is fine except I'm sure I read somewhere that tax is 1.3/1.5? Or maybe it was wishful thinking on my part. The thing is now I go to check I find sites saying between 2 and 7% is normal, but surely there is a fixed rate for everyone?
Also if I tell the English tax office I'm leaving the country I can claim back the tax I paid this year (according to a very old relative who may also have been imagining it) so does this mean while I'm in Korea they dont get any tax or NI from me?
One last question: Do I repay my student loan whilst in Korea, I know you dont have to pay if your not making over �15,000 a year but not sure how that applys to jobs out of the country as they are supposed to take it automatically from my paychecks.
Thanks in advance and I'm sorry if the questions seem stupid, I just got confused and thought it would be better to speak to people who have done this before |
Unless you will be making over 3.5 million KRW per month (4.5% tax rate) it is CRAP.
Look for a new employer.
| ttompatz wrote: |
NPS is 4.5% and matched by him. (9% total)
NHIC is 2.94% and matched by him. (5.88% total)
Taxes for your average hagwan worker are less than 2% (32k on a salary of 2.2 million (~1.45%)). Taxes ARE progressive and the % rate increases with your salary.
At 2.4 million the rate goes up to 1.92% (46k won)
At 2.6 million the rate goes up to 2.50% (65k won)
At 2.8 million the rate goes up to 3.25% (91k won)
At 3.0 million the rate goes up to 3.96% (119k won)
http://www.nts.go.kr/eng/help/help_56.asp?top_code=H001&sub_code=HS05&ssub_code=HSE4#none
(plug in the monthly salary for withholding deductions (tax) per month (2011 rates))
NO other deductions are allowed or required of foreign workers (by law) without your express consent.
You are exempt (contact the labor office) from unemployment, etc since you cannot collect (no job = no visa = no ability to collect).
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