Korean Job Discussion Forums

[WBINC]

I have been working for the same agency for the past 5 years. I have always been taxed at 3.3% taken out by the company. I verified that yes they were indeed paying taxes to the tax office. Yesterday, I got a document from the tax office telling me my nominal tax rate on my income for 2010 is an additional 15% and gave me a bill for over W1,900,000 just for the year 2010~for this year I have no idea what is coming. Has the law changed? I recieve no pension, health care, or severence. Anyone else experienced or know about this. ANY and all help would be highly appreciated.

[ttompatz]

[WBINC]

I should add more to the story. The tax office claimed they could not locate me!? So, I assume they just applied the flat 15% rate to benifit themselves. I think it is best I go fight them in person as I also have deductions to make the bill lower. Thanks again...

[alistaircandlin]

Yeah, I have to pay the same, as does another guy I know who has the same job as me.

After you've been working in Korea for two years you have to pay a higher rate of tax. Until then you get an exemption from the higher rate.

As ttompatz said, my employer has been undertaxing me throughout 2011. If you can show your spending you might be able to get a reduction, though.

You should make sure that the National Tax Service has a record of your ARC number, which should be the same number that you've used for your bank account. At the end of the year, your bank can give you details of your spending, and you should get a tax reduction, as long as you've spent above 20% of your income.

Also, remember to get a Tax Save Card. You should use this every time you spend cash. The retailer should swipe it for you, so that your cash spending will give you an end of year reduction in tax.

This year my employer is taxing me more each month - around 150,000 Won over what I paid monthly last year, I think. So at the end of 2012, I shouldn't be hit by the tax bomb. (Hopefully).

[WBINC]

I thought, naively, we just paid the the 3.3%, end of story,,,that seems not to be the case. That is the companis liability only...Luck on my side they are only dinging me for 2010 and 2011. I also learned that immigration and the tax office don't share information, which is a somewhat bonus because they could also get me for 2007 until now. There is no national data base?? I have to pay W400,000 because they could not find me..WTF...Also, we have to file our own tax statements where any other employee do not. I have a feeling there are countless others out there but the system just has not caught up with them yet. Tompazz, according to what the tax office told me the NTS calculator does not apply to us. I work for a major law firm and both the tax lawyers and CPA's confirfmed my bill. Even though I still don't accept the result. This is not the end of the story, I will do my D.D. next week....

[Swampfox10mm]

The thing that killed us waygooks on taxes was the removal of some 30% tax break on taxable income that us foreigners enjoyed for many years (although Americans, for example, still get that tax break their first 2 years here, I understand). Now that's gone, and we're paying higher taxes. The killer comes when your school does not withhold enough. If you're listed as a private contractor, it's even worse.

I used to enjoy a 1 million plus tax return until this changed last year. Now I pay in almost 500,000 (although I have offset this by the ability to apply my online program tuition costs).

So kiddies... if you have been studying for an MA or something like that, make DARN SURE you print out the billing and apply that deduction to your taxes. It saved me over 400,000 to do so last year, and 200,000 this year. My coworker saved over 600,000. We are lucky enough that our school does our taxes for us, and helps us apply these things if we bring the paperwork.