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Korean Job Discussion Forums
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IwalkAlone
Joined: 30 Nov 2005
Location: Daegu
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 Posted: Tue Dec 06, 2005 11:12 am Post subject: |
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| jacl wrote: |
Here's the deal. No other wages have been earned (as far as anyone knows) than my 2.2/month. I pay 3.7% taxes (81,400/month). I pay into pension, but that only started in August. I started this job in March. That gives me 10 months for the year. I'm not worried about a global tax. I figure that you're taxed for this year and I didn't work anywhere else. No other income. So, I will have 5 months of pension paid (98,550/month = 492,750) at the end of the year. |
ok here goes...
10 months in korean tax year X 2.2 salary = 22,000,000
Your tax bracket allows you to deduct = -11,050,000
You are 1 dependent allows you to deduct= -1,000,000
Pension premium allows you to deduct= -985,000 (10 months worth)
Special basic min. deduction given to all taxpayers= -600,000
After all deductions have been made, taxable income= 7,365,000
taxable income X tax rate (9%) = 662,850
Salary and wage worker = class A income = further deduction= -323,855
resident tax is 10% of income tax = +33,900
Tax that you owe = 372,890
FILE A TAX RETURN FOR A REFUND IN MAY IF YOU HAVE PAID MORE THAN THIS AMOUNT!!! |
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Mr. Pink
Joined: 21 Oct 2003
Location: China
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| Posted: Tue Dec 06, 2005 1:34 pm Post subject: |
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Actually where do you get the may filing info?
You file end of December/beginning or January. I get my refund in like March.
The stuff they send you to attach to your filing (credit paper, insurance paper, etc. Comes end of Nov. or beginning of Dec.) |
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jacl
Joined: 31 Oct 2005
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| Posted: Tue Dec 06, 2005 4:24 pm Post subject: |
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| IwalkAlone wrote: |
| jacl wrote: |
Here's the deal. No other wages have been earned (as far as anyone knows) than my 2.2/month. I pay 3.7% taxes (81,400/month). I pay into pension, but that only started in August. I started this job in March. That gives me 10 months for the year. I'm not worried about a global tax. I figure that you're taxed for this year and I didn't work anywhere else. No other income. So, I will have 5 months of pension paid (98,550/month = 492,750) at the end of the year. |
ok here goes...
10 months in korean tax year X 2.2 salary = 22,000,000
Your tax bracket allows you to deduct = -11,050,000
You are 1 dependent allows you to deduct= -1,000,000
Pension premium allows you to deduct= -985,000 (10 months worth)
Special basic min. deduction given to all taxpayers= -600,000
After all deductions have been made, taxable income= 7,365,000
taxable income X tax rate (9%) = 662,850
Salary and wage worker = class A income = further deduction= -323,855
resident tax is 10% of income tax = +33,900
Tax that you owe = 372,890
FILE A TAX RETURN FOR A REFUND IN MAY IF YOU HAVE PAID MORE THAN THIS AMOUNT!!! |
Where does my boss's contribution to the national pension (matching my contribution) come into play? I get all 9% when I leave Korea. So maybe it's not a deduction. Could be that the 4.5% that I profit from is considered salary. Also, I don't pay into medical. Is that even a factor, or is it just not a deduction?
Thanks for the info. It's the most useful I've gotten so far. |
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IwalkAlone
Joined: 30 Nov 2005
Location: Daegu
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| Posted: Tue Dec 06, 2005 7:17 pm Post subject: |
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| Mr. Pink wrote: |
Actually where do you get the may filing info?
You file end of December/beginning or January. I get my refund in like March.
The stuff they send you to attach to your filing (credit paper, insurance paper, etc. Comes end of Nov. or beginning of Dec.) |
The tax site lays out the procedures for filing. We are suppose to receive tax documentation up until the end of february and then the filing period for Korea is from May1 to May 31 for the previous tax year. I've never heard of a country filing a month or even a few days after a tax year. Could you please explain your situation more. |
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IwalkAlone
Joined: 30 Nov 2005
Location: Daegu
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| Posted: Tue Dec 06, 2005 7:26 pm Post subject: |
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Where does my boss's contribution to the national pension (matching my contribution) come into play? I get all 9% when I leave Korea. So maybe it's not a deduction. Could be that the 4.5% that I profit from is considered salary. Also, I don't pay into medical. Is that even a factor, or is it just not a deduction?
Thanks for the info. It's the most useful I've gotten so far. |
ok, pension is 9% however you can only deduct 4.5% from your taxes.
whether you have paid 5 months up until now is irrelevent. You owe 10 months worth which is 10 X 99,000. pension is a deductible. Health insurance is a deductible too however unless your paying over 600,000 in that 10 months then its irrelevent. Korea gives all taxpayers a 600,000 basic deduction. I pay about 400,000 for health insurance a year, so its too low to be a dedctible. The contributing 4.5% to the pension scheme by the employer is not taxed nor is it a deductible for your taxes. |
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jacl
Joined: 31 Oct 2005
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| Posted: Tue Dec 06, 2005 7:59 pm Post subject: |
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It all makes sense to me now.
How about free rent and the plane ticket(s). Are they taxable. I have heard that they are not. Rent may be taxable if a teacher receives rental income (rental allowance), but my place is under my boss's name.
NTS's website was pretty much spot on. The 9% tax for a resident is only on a small portion of my income. |
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skyhawk
Joined: 01 Dec 2005
Location: Korea
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| Posted: Wed Dec 07, 2005 3:46 am Post subject: |
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| desultude wrote: |
| as an American, I haven't had to pay taxes before (we get the first two years in Korea teaching at a uni tax free.) |
Can someone explain this statement? If I am an American working at a uni in Korea, I am not subject to Korean tax? |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Wed Dec 07, 2005 7:39 am Post subject: |
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Iwalkalone,
In the US, the filing deadline for the Federal Income tax is generally April 15 (some states are different). However, it is possible to file anytime after January 1, if you have the needed documents. It is possible for some people to get their documets early and file early. Perhaps the same is true in Korea. |
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IwalkAlone
Joined: 30 Nov 2005
Location: Daegu
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| Posted: Wed Dec 07, 2005 9:26 am Post subject: |
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| ontheway wrote: |
Iwalkalone,
In the US, the filing deadline for the Federal Income tax is generally April 15 (some states are different). However, it is possible to file anytime after January 1, if you have the needed documents. It is possible for some people to get their documets early and file early. Perhaps the same is true in Korea. |
Perhaps you are right. Maybe one can go to his/her local DTO with an ARC and get a printout of the taxes paid for early filing. I do not know, but what I do know is that in February, employers are obligated to give their employees the necessary documents to file, unless the school is filing for you....however, I would file my own taxes for the peace of mind.
Korea's filing period is May1-May31, and if you have a refund, it should reach you in 1-2 months, which would be June-July. I would like to know how one can get their refund in March as a previous poster said. If its possible, I'm game since I finish the present contract in the next 2 months and do not wish to file korean taxes while being back in the States.
For Jacl:
If you are receiving a stipend for rent, it is taxable and should be included in your annual income. If your housing is rent-free (paid by the school) its irrelevent then to your tax situation. Plane tickets I do not know about, and you probably have a better chance at striking on the lottery than getting audited for not claiming plane tickets on your income. |
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