Korean Job Discussion Forums

RedRob · Joined: 07 Jul 2003 Location: Narnia

My boss told me yesterday that the tax rate will go up to about 9% next payday, but here's the punchline....only for kiwis and aussis...WTF??!

My boss has quite a good sense of humour and is a great bloke- I'm hoping like hell he's pulling my chain. Can anyone confirm or deny this?

I'll probably ring the embassy t'morra, but a quick response would be cool.

Cheers, Red

lush72 · Joined: 18 Aug 2003 Location: I am Penalty Kick!

ghostshadow · Joined: 27 Apr 2004 Location: Seoul

I guess your boss got you really good, or he wants to pocket that money. I think he was just joking with you.

hellofaniceguy · Joined: 10 Jan 2003 Location: On your computer screen!

It's EASY enough to verify if you really want to.
Make a trip to the local tax office, (NTS) and they will tell you EXACTLY what your tax rate should be.
Almost every city in korea has a tax office.

just because · Joined: 01 Aug 2003 Location: Changwon - 4964

Its a lie.....I hope he is a joker Smile

RedRob · Joined: 07 Jul 2003 Location: Narnia

It's no joke- Mrs RR just rang the embassy, it's gonna start next month and it's for some kinda pension plan. 1/2 to be paid by the employer and 1/2 by the employee. RATS!!

inkoreaforgood · Joined: 15 Dec 2003 Location: Inchon

This may not be a bad thing. As a Canadian, I have the same deal(for paying the pension plan), and the 2 countries have a tax treaty. When I decide to leave Korea, or just finish my job, I get ALL that money, what I paid and what the boss paid, into the pension. Don't know what it is for Aussies and Kiwis, but it is possible it could be the same thing!! Also, it doesn't matter what nationality you are, everyone must pay into the pension fund. My friend and his boss found out the really hard way (ie, investigation into his school's bookkeeping).

RedRob · Joined: 07 Jul 2003 Location: Narnia

apparantly the canadians do but we don't qualify for this refund. I'll hit the embassy again and ask them why not. Seems like a waste of bucks.

Dispatched · Joined: 08 May 2004

Yup, I've got the same thing as of July 1st. I will have to pay 4.5% (The percentage depends on the amount you are on) of my wage towards a pension of which I won't get a cent from due to NZ not having a reciprocal pension agreement with Korea.
It sucks but 10% tax is still a ton better than the 20-30% I would pay in NZ.

kangnamdragon · Joined: 17 Jan 2003 Location: Kangnam, Seoul, Korea

Is it possible this is the pension plan the rest of us are paying into? Were Kiwis and Aussies exempt from this before?

fidel · Joined: 07 Feb 2003 Location: North Shore NZ

No, everyone is required to pay into the pension plan if you work for a company with more than five employees (if I remember correctly). As for the tax rate increasing for Kiwis and Aussies, what a load of bollocks!

Dispatched · Joined: 08 May 2004

As of July 1st all places must pay into the pension not just those with more than 5 employees.
I guess seeing as we aren't getting any of it back it basically is a tax, though technically it will be tax+pension.

Adam2446 · Joined: 02 Jul 2004

I'm Canadian and pay into the pension plan and I kind of like it for a couple of reasons. First, the employer has to pay half of the monthly contribution, so when you leave Korea you will get double what you paid into it yourself. Second, I kind of view it as a forced savings plan. Even if you stay for just one year when you go home to Australia you should get a couple of thousand dollars after being home for 30 to 60 days I think it is.

Son Deureo! · Joined: 30 Apr 2003

This is only good if you get it all back, which is only true for Americans and Canadians. Having to pay into a pension plan you'll never see a cent of sucks for both the teacher and the boss. Sorry to hear you finally have to pay into it, RedRob.