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Korean Job Discussion Forums
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jcd
Joined: 13 Mar 2012
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 Posted: Wed Feb 26, 2014 6:12 pm Post subject: |
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If you can't get a good explanation contact the Korean international tax office 0215880560 or 0220765711
or go to the nearest Korean taxation office. |
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jennad
Joined: 02 Dec 2010
Location: San Diego
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| Posted: Wed Feb 26, 2014 6:54 pm Post subject: |
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| IlIlNine wrote: |
| Since you work for a large company, I assume that you used their internal system to file your taxes after downloading the relevant documents outlining your yearly expenditures from the YesOne government site. |
I have no idea what this is. Someone in our accounting department apparently filed our taxes for us. I've never had to do this before. No one told us about it, gave us instructions, etc. There wasn't any warning our February paycheck would even be different than usual. I had to inquire about it to get answers. |
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jennad
Joined: 02 Dec 2010
Location: San Diego
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| Posted: Wed Feb 26, 2014 6:57 pm Post subject: |
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| oppa637 wrote: |
| Doesn't seem like you got your deductions. Did you go to the yesone site and print your deductions for the year? If not, thats where your problem lies. |
The fact that everyone keeps referring to this yesone site makes me nervous. I have never heard of this before in my life. My company apparently did everything for us, which is probably why we got royally effed. They said we weren't eligible for any deductions when I asked accounting about it yesterday. That was their best explanation *face palm* |
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jennad
Joined: 02 Dec 2010
Location: San Diego
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| Posted: Wed Feb 26, 2014 6:58 pm Post subject: |
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| Rockhard wrote: |
| If you paid $3000 in taxes and made less than $40,000, that that might be something to shake a stick at, but if you made more than $40,000 it sounds about right. |
I paid over 3 million in taxes last year and I make under 40 mill T_T |
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furtakk
Joined: 02 Jun 2009
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| Posted: Wed Feb 26, 2014 8:18 pm Post subject: |
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| wishfullthinkng wrote: |
this is why you should never use cash in korea. NEVER.
i haven't once had to pay taxes here, including this year. every year has netted me a return due to not paying in cash. |
Yep yep. I always get around 4-500K back. This year, I will probably get over a million back because of the new tax breaks for wolsae renters.
Korea is the most card friendly place I've ever been to. No need to pay for things in cash. |
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oppa637
Joined: 05 Dec 2011
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| Posted: Wed Feb 26, 2014 8:22 pm Post subject: |
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| jennad wrote: |
| oppa637 wrote: |
| Doesn't seem like you got your deductions. Did you go to the yesone site and print your deductions for the year? If not, thats where your problem lies. |
The fact that everyone keeps referring to this yesone site makes me nervous. I have never heard of this before in my life. My company apparently did everything for us, which is probably why we got royally effed. They said we weren't eligible for any deductions when I asked accounting about it yesterday. That was their best explanation *face palm* |
How long have you been in Korea? You have to fend for yourself here. I don't know what company you work out but you should really find a buddy there to inform you of these things. It's normal practice. The company files for you but if you don't give them the info for your deductions, they won't do it. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Wed Feb 26, 2014 11:56 pm Post subject: |
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| jennad wrote: |
| Rockhard wrote: |
| If you paid $3000 in taxes and made less than $40,000, that that might be something to shake a stick at, but if you made more than $40,000 it sounds about right. |
I paid over 3 million in taxes last year and I make under 40 mill T_T |
I assume that's not just income taxes. It must also include pension and health insurance contibutions. In years where no income tax was taken off my check every month, I had a hefty 800,00 wonish bill due in february the following year. Since last may, the local ed office started deducting 70,000 won for tax each month. So, I had to pay maybe 300,000 this year. Use to be we paid a lot less as many things weren't taxed and there were more exemptions.
If only your income tax is 3000 a year for an under 40 k income, you might want to go to the labor board and report your boss for fraud. Think my total deductions come in at around 8 % of my income. Income taxes, health, and pension. I won't argue over health and pension. Those do me good.
If the taxes aren't deducted monthly, which some employers neglect to do, then you got to pay it all at once at the end of the year. |
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I-am-me
Joined: 21 Feb 2006
Location: Hermit Kingdom
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| Posted: Thu Feb 27, 2014 4:42 pm Post subject: |
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| Depends on which tax method they used. There are 2. Usually the flat rate - deductions is used. DId they ask you for your deductions printout? If not, they probably just taxed you at 17% the standard rate. YOu have to ask the office for the specifics. And check how much tax they are taking out monthly. |
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faeriehazel
Joined: 04 Mar 2008
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| Posted: Sun Mar 02, 2014 6:48 am Post subject: |
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| oppa637 wrote: |
How long have you been in Korea? You have to fend for yourself here. I don't know what company you work out but you should really find a buddy there to inform you of these things. It's normal practice. The company files for you but if you don't give them the info for your deductions, they won't do it. |
Yeah, I called my husband's school about turning in tax documents and they were all "they're due today, we put the notice up on the website a month ago" and I was like it's in flippin' Korean, how are your foreign professors supposed to know what it's about?!
Korean taxes are a mystery to me; I paid 2 mil a year for several years, then last year I went to an accountant and I got some money back - I don't even understand how that works because the accountant didn't even ask me for any documents or anything. |
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nate1983
Joined: 30 Mar 2008
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| Posted: Sun Mar 02, 2014 1:18 pm Post subject: |
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| wishfullthinkng wrote: |
this is why you should never use cash in korea. NEVER.
i haven't once had to pay taxes here, including this year. every year has netted me a return due to not paying in cash. |
What are you talking about? Is that the "credit" or whatever you get from using a card (so businesses can't evade taxes)? Pardon my ignorance, I've been out of Korea for a couple years and never really used a card there. Can't you equivalently get a 현금영수증 if you pay with cash?
What your employer is taking out of your (OP) monthly pay is not actual taxes, it's just withholding. My guess is that they under withheld your actual liability last year and now need to catch up. I imagine your school is filing taxes on your behalf, which generally makes your life simple, but you're free to at least examine the forms, if not actually file them yourself. They're probably taking the path of least resistance and just assuming you don't have any special deductions or whatever, but if that's not the case then you should alert them about it. |
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wishfullthinkng
Joined: 05 Mar 2010
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| Posted: Sun Mar 02, 2014 5:58 pm Post subject: |
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| nate1983 wrote: |
| wishfullthinkng wrote: |
this is why you should never use cash in korea. NEVER.
i haven't once had to pay taxes here, including this year. every year has netted me a return due to not paying in cash. |
What are you talking about? Is that the "credit" or whatever you get from using a card (so businesses can't evade taxes)? Pardon my ignorance, I've been out of Korea for a couple years and never really used a card there. Can't you equivalently get a 현금영수증 if you pay with cash?
What your employer is taking out of your (OP) monthly pay is not actual taxes, it's just withholding. My guess is that they under withheld your actual liability last year and now need to catch up. I imagine your school is filing taxes on your behalf, which generally makes your life simple, but you're free to at least examine the forms, if not actually file them yourself. They're probably taking the path of least resistance and just assuming you don't have any special deductions or whatever, but if that's not the case then you should alert them about it. |
nate1983, your cc/debit card is automatically linked to your national id number when you get one and you get tax deductions based on how much you use your cc/debit cards. debit cards get a higher rate back than cc's and you get different rates based on what kind of purchases you make. for example, public transport and traditional markets get a higher percentage deductions than a lot of other purchases.
the reason why you want to use a cc/debit over cash is that you can get tax credit if you use cash only if you register your id and phone number with the tax office and use the card they give you (which nullifies the ease of using cash vs. a card) during each transaction or give the merchant your phone number for every transaction. both of which are more inconvenient than simply using a cc. plus you get absolutely zero benefit from using cash even if you do give your tax card/phone number on each purchase. with cc's here you get some pretty great bonuses. on my cc's i get airline mileage, 200k in gift vouchers a year, a free companion flight to jeju, travel insurance, top level of priority pass lounge access for free, a dedicated english-language hotline with zero waiting time, cash back if i want it, etc.
plus with a cc/debit card you can use tmoney integrated into the NFC chip in the card so you never have to refill or buy a tmoney card again. to top it all off, with a debit/cc you create a paper trail which can be useful (adjosshi trying to rip you off in a taxi? refuse to use cash and use a cc which will have all of his information attached to the transaction for easy reporting)
as i said before, you should never use cash in korea. even if you are only here for a year. use your debit card instead. |
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nate1983
Joined: 30 Mar 2008
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| Posted: Sun Mar 02, 2014 10:58 pm Post subject: |
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| wishfullthinkng wrote: |
| nate1983 wrote: |
| wishfullthinkng wrote: |
this is why you should never use cash in korea. NEVER.
i haven't once had to pay taxes here, including this year. every year has netted me a return due to not paying in cash. |
What are you talking about? Is that the "credit" or whatever you get from using a card (so businesses can't evade taxes)? Pardon my ignorance, I've been out of Korea for a couple years and never really used a card there. Can't you equivalently get a 현금영수증 if you pay with cash?
What your employer is taking out of your (OP) monthly pay is not actual taxes, it's just withholding. My guess is that they under withheld your actual liability last year and now need to catch up. I imagine your school is filing taxes on your behalf, which generally makes your life simple, but you're free to at least examine the forms, if not actually file them yourself. They're probably taking the path of least resistance and just assuming you don't have any special deductions or whatever, but if that's not the case then you should alert them about it. |
nate1983, your cc/debit card is automatically linked to your national id number when you get one and you get tax deductions based on how much you use your cc/debit cards. debit cards get a higher rate back than cc's and you get different rates based on what kind of purchases you make. for example, public transport and traditional markets get a higher percentage deductions than a lot of other purchases.
the reason why you want to use a cc/debit over cash is that you can get tax credit if you use cash only if you register your id and phone number with the tax office and use the card they give you (which nullifies the ease of using cash vs. a card) during each transaction or give the merchant your phone number for every transaction. both of which are more inconvenient than simply using a cc. plus you get absolutely zero benefit from using cash even if you do give your tax card/phone number on each purchase. with cc's here you get some pretty great bonuses. on my cc's i get airline mileage, 200k in gift vouchers a year, a free companion flight to jeju, travel insurance, top level of priority pass lounge access for free, a dedicated english-language hotline with zero waiting time, cash back if i want it, etc.
plus with a cc/debit card you can use tmoney integrated into the NFC chip in the card so you never have to refill or buy a tmoney card again. to top it all off, with a debit/cc you create a paper trail which can be useful (adjosshi trying to rip you off in a taxi? refuse to use cash and use a cc which will have all of his information attached to the transaction for easy reporting)
as i said before, you should never use cash in korea. even if you are only here for a year. use your debit card instead. |
Okay, that's what I figured you meant, and wasn't aware of all those details. I heard people mention how paying with a card was a good deal, or to at least get the cash receipts, but I never really did it since i was lazy. I live in the US now and use CC whenever I can since I have a really good rewards card, and it's gotten me a number of free airline tickets since I also use it for company travel.
By "debit card," is that different than a standard-issue "bank card"? I think my KEB card read 현금카드. I used to use them primarily to withdraw cash, but I think they also worked on store transactions.
Not relevant for me now, but for people there, do they get the deductions from using the card even if they (or employer filing on their behalf) don't specifically mention it? Like, is it automatically input as a deduction by the tax office? |
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wishfullthinkng
Joined: 05 Mar 2010
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| Posted: Mon Mar 03, 2014 12:12 am Post subject: |
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| nate1983 wrote: |
Okay, that's what I figured you meant, and wasn't aware of all those details. I heard people mention how paying with a card was a good deal, or to at least get the cash receipts, but I never really did it since i was lazy. I live in the US now and use CC whenever I can since I have a really good rewards card, and it's gotten me a number of free airline tickets since I also use it for company travel.
By "debit card," is that different than a standard-issue "bank card"? I think my KEB card read 현금카드. I used to use them primarily to withdraw cash, but I think they also worked on store transactions.
Not relevant for me now, but for people there, do they get the deductions from using the card even if they (or employer filing on their behalf) don't specifically mention it? Like, is it automatically input as a deduction by the tax office? |
a debit card is any mastercard/visa/discover branded card that is not linked to a credit line, but instead to a bank account. any card that is branded with star/cirrus/etc. and do not have the mastercard/visa/discover branding on it is considered an atm card or "bank card". a credit card in korea is a mastercard/visa/discover branded card that is linked to a bank account but uses a credit line that automatically subtracts the total at the end of a billing cycle from the linked account. credit cards here can also function as bank cards and can be used for cash advances at atm's at well.
all transactions are automatically tracked and sorted by the tax office. at tax time you log in to their website, get your spending information automatically and then use it to fill out your tax form. it's a very efficient and easy process. as for deductions they are not automatically input, but it's easy to figure out what you need to claim as deductions based on the incredibly well tracked financial report previously mentioned. |
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nate1983
Joined: 30 Mar 2008
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| Posted: Mon Mar 03, 2014 1:30 am Post subject: |
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| wishfullthinkng wrote: |
a debit card is any mastercard/visa/discover branded card that is not linked to a credit line, but instead to a bank account. any card that is branded with star/cirrus/etc. and do not have the mastercard/visa/discover branding on it is considered an atm card or "bank card". a credit card in korea is a mastercard/visa/discover branded card that is linked to a bank account but uses a credit line that automatically subtracts the total at the end of a billing cycle from the linked account. credit cards here can also function as bank cards and can be used for cash advances at atm's at well.
all transactions are automatically tracked and sorted by the tax office. at tax time you log in to their website, get your spending information automatically and then use it to fill out your tax form. it's a very efficient and easy process. as for deductions they are not automatically input, but it's easy to figure out what you need to claim as deductions based on the incredibly well tracked financial report previously mentioned. |
Okay, thanks for clarifying. From what I can tell then, a "debit card" allows you to use the Visa/MC processing networks with vendors, while a "bank card" does not (ATM only)? Bank cards would be debit cards in the literal sense, but ones that only allow debits for bank-related, rather than commercial, transactions.
Cool to hear they keep track of all this stuff through an accessible online portal. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Mon Mar 03, 2014 7:38 pm Post subject: |
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| furtakk wrote: |
| wishfullthinkng wrote: |
this is why you should never use cash in korea. NEVER.
i haven't once had to pay taxes here, including this year. every year has netted me a return due to not paying in cash. |
Yep yep. I always get around 4-500K back. This year, I will probably get over a million back because of the new tax breaks for wolsae renters.
Korea is the most card friendly place I've ever been to. No need to pay for things in cash. |
Please tell me more about this. Is Wolsae where you pay a deposit and also monthly rent. I always confuse the two Jeonse and Weolse. I have a deposit in a building and pay monthly rent. Am I eligible for a tax break? If so, how do I get it? It's not on my yes sign form. I'd like to know for next year. |
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