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Korean Job Discussion Forums
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canadian_in_korea
Joined: 20 Jun 2004
Location: South Korea
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 Posted: Sun Jan 30, 2005 7:57 pm Post subject: |
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| chronicpride wrote: |
| lookingtoteach wrote: |
| It's not that I don't want to pay taxes on it, I just don't know if I have to, or how to. I can't prove how much I made because I don't have my paystubs from them. |
You can get your tax receipts from Korean Tax Services at the tax office in the district that your hagwon resides in. I'm assuming that you are back in Canada and may find it difficult to get to that office over here, so be mindful that if you file without those receipts, you increase the chance of audit. The auditors will give you a time limit to produce those receipts, otherwise you will be subject to a fine, which I've seen in the neighborhood of $1200CAD. |
What if your employer didn't deduct any taxes at all? They only deducted pension and health insurance? I guess they assumed I would have to pay taxes in Canada anyway so they didn't have to take them out. I'm not sure if you know the answer but I thought it was worth a shot... |
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Rather_Dashing
Joined: 07 Sep 2004
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| Posted: Sun Jan 30, 2005 8:40 pm Post subject: |
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| chronicpride wrote: |
| How long is that period, by the way? |
From what I've read in the FAQ forums, and from what I know off-hand, you need to spend a minimum of one year outside the country and have no ties within the country (no dependents [spouse/kids], no property, no credit cards, no bank accounts, etc.). This includes cutting off your government healthcare. If you do that, you should be safe.
However, I have read of cases of some people being in Korea for 2 years, but because of their ties with Canada, they have had to pay federal income taxes upon their return. Revenue Canada's own site says that there is no guarantee that any income you earn, regardless of how long you were outside of Canada, is free from taxation, and that they examine it on a case-by-case basis. |
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chronicpride
Joined: 16 Jan 2003
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| Posted: Sun Jan 30, 2005 9:06 pm Post subject: |
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Actually, I wanted to see how current your info was.   There have been some recent changes over the past few years.
The old 2 year rule has been scrapped, but you fall into eligibility to be deemed a non-resident from the date that you leave Canada, the date your spouse or common-law partner and dependents leave Canada, or the date you become a resident of the country to which you're immigrating. Whichever date is the latest of the three.
The OP has a strong case for non-residency status, and avoidance of paying tax on his world income, if he did not own a home in Canada during his time abroad (unless held by an arms-length party), had no spouse or dependants living in Canada during that time, or has income being generated from a Canadian business (although dividends and sale of stock, can be deemed a secondary tie). Driver's licenses, bank accounts/credit cards, and provincial health insurance are also treated as secondary ties.
Assuming that he may be one of the younger ones that come through here, he likely will not have any primary ties, and maybe one or two secondary ties. Couple that with 4 months of overseas income, I would lean in favor that he can check off that he was a non-resident for part of the past tax year. |
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The Lemon
Joined: 11 Jan 2003
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| Posted: Sun Jan 30, 2005 10:19 pm Post subject: |
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| Dashing wrote: |
| From what I've read in the FAQ forums, and from what I know off-hand, you need to spend a minimum of one year outside the country.. |
Mr. Dashing - CP's giving very good info in this thread. You're misinformed. The two year (it was never one) rule has been gone for several years. |
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Rather_Dashing
Joined: 07 Sep 2004
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| Posted: Sun Jan 30, 2005 11:24 pm Post subject: |
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| The Lemon wrote: |
| Dashing wrote: |
| From what I've read in the FAQ forums, and from what I know off-hand, you need to spend a minimum of one year outside the country.. |
Mr. Dashing - CP's giving very good info in this thread. You're misinformed. The two year (it was never one) rule has been gone for several years. |
Blame the FAQs then
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The Lemon
Joined: 11 Jan 2003
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| Posted: Mon Jan 31, 2005 12:47 am Post subject: |
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| Rather_Dashing wrote: |
Blame the FAQs then
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Blame the FAQ less, read them more. Page one, 2nd post, bold type. |
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Rather_Dashing
Joined: 07 Sep 2004
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| Posted: Mon Jan 31, 2005 2:35 am Post subject: |
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| The Lemon wrote: |
| Rather_Dashing wrote: |
Blame the FAQs then
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Blame the FAQ less, read them more. Page one, 2nd post, bold type. |
Say I'm wrong less, read my post more:
| Quote: |
| However, I have read of cases of some people being in Korea for 2 years, but because of their ties with Canada, they have had to pay federal income taxes upon their return. Revenue Canada's own site says that there is no guarantee that any income you earn, regardless of how long you were outside of Canada, is free from taxation, and that they examine it on a case-by-case basis. |
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The Lemon
Joined: 11 Jan 2003
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| Posted: Mon Jan 31, 2005 2:43 am Post subject: |
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That part's right.
This is wrong:
| Dashing, earlier today wrote: |
| From what I've read in the FAQ forums, and from what I know off-hand, you need to spend a minimum of one year outside the country.. |
Here's me, May 2003, page one of that FAQ thread you were referred to earlier in this thread:
| Lemon wrote: |
| 1. Bye-bye "two-year rule" |
It's not a big deal. But it's annoying when I meet some guy in a bar or a teachers' room who gives me this "two year" false info like it's the gospel because he read it off of Dave's ESL. |
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chronicpride
Joined: 16 Jan 2003
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| Posted: Mon Jan 31, 2005 2:46 am Post subject: |
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| canadian_in_korea wrote: |
What if your employer didn't deduct any taxes at all? They only deducted pension and health insurance? I guess they assumed I would have to pay taxes in Canada anyway so they didn't have to take them out. I'm not sure if you know the answer but I thought it was worth a shot... |
I would imagine that you have less to worry about in this case, if you were to omit your world income, as you won't be verifiable on the Korean side, tax-wise. You will have a historical file for the Pension Scheme and the health plan. There's always been a long running speculative debate if either country is using the tax treaty to swap salary and taxation info, but if the info sharing has spread beyond their direct counterpart's ministry and over to the National Pension and National Health Insurance Corporations, then that would be a first to hear about it here. If Korean governmental bodies ran that tight of a ship, then every director would be fully compliant and will not even think about cutting some corners, which is a hallmark trait of most directors over here. |
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