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Reena
Joined: 16 Nov 2004
Location: Ilsan
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 Posted: Wed Dec 14, 2005 3:46 pm Post subject: Tax deducted by your employer |
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| How much does your employer deduct for taxes each month? Mine is 3% but a friend of mine said her director is taking 5.5% because she said it's higher for foreigners... any comments? |
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sheba
Joined: 16 May 2005
Location: Here there and everywhere!
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| Posted: Wed Dec 14, 2005 4:25 pm Post subject: |
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| You friend is getting ripped off. |
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ilovebdt
Joined: 03 Jun 2005
Location: Nr Seoul
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| Posted: Wed Dec 14, 2005 4:45 pm Post subject: |
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| I believe the amount of tax you pay depends on how much you earn. Maybe your friend should talk to the appropriate government office to find out if she is paying the correct amount. |
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flint
Joined: 11 Apr 2004
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| Posted: Wed Dec 14, 2005 6:29 pm Post subject: |
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Check here http://www.nts.go.kr/eng/ they do answer back in English to inquiries.
I found out I was being ripped off by Ivy English School in Cheongju. They charged me 6% my first year and 5% after that when the rate should have been 3.3% the whole time. The director's husband even made a big deal of how nice he was being by dropping it the 1%.
IF they are using the National Health Insurance and paying into the pension plan it would be higher. Without it, making 1.9-2.1 million won it should be 3.3%.
Your friend should also make sure he has pay stubs showing exactly what is being taken off as a deduction. One mistake I made was not having that, so I couldn't prove anything, and thus was SOL. |
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Grotto
Joined: 21 Mar 2004
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| Posted: Wed Dec 14, 2005 11:25 pm Post subject: |
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Go with the monthly withholding tax. http://www.nts.go.kr/eng/
on 2 mil its about 30,000 a month which is a far cry from 5% or even 3.3%
Dont let the thieves rip you off...you're only a victim if you let them! |
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the eye
Joined: 29 Jan 2004
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| Posted: Wed Dec 14, 2005 11:57 pm Post subject: |
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| flint wrote: |
IF they are using the National Health Insurance and paying into the pension plan it would be higher. Without it, making 1.9-2.1 million won it should be 3.3%.
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no. countributing to the national pension and health insurance plans will LOWER your tax responsibilites TO about 3ish percent.
the tax witholding calculation provided by the tax website is accurate if you contribute to both plans.
if you don't contibute to either plan , your rate could be over 5.5%. |
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jacl
Joined: 31 Oct 2005
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| Posted: Thu Dec 15, 2005 6:01 am Post subject: |
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| the eye wrote: |
| flint wrote: |
IF they are using the National Health Insurance and paying into the pension plan it would be higher. Without it, making 1.9-2.1 million won it should be 3.3%.
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no. countributing to the national pension and health insurance plans will LOWER your tax responsibilites TO about 3ish percent.
the tax witholding calculation provided by the tax website is accurate if you contribute to both plans.
if you don't contibute to either plan , your rate could be over 5.5%. |
That's been proven wrong on another thread. The tax rate is correct on that website. If you contribute to the pension and/or medical then your tax rate is even lower than that. 5.5% is not correct. It's waaaaaaaaay off. |
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jacl
Joined: 31 Oct 2005
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| Posted: Thu Dec 15, 2005 6:01 am Post subject: |
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| the eye wrote: |
| flint wrote: |
IF they are using the National Health Insurance and paying into the pension plan it would be higher. Without it, making 1.9-2.1 million won it should be 3.3%.
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no. countributing to the national pension and health insurance plans will LOWER your tax responsibilites TO about 3ish percent.
the tax witholding calculation provided by the tax website is accurate if you contribute to both plans.
if you don't contibute to either plan , your rate could be over 5.5%. |
Have you ever done your taxes in Korea? |
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cdn_guy7610
Joined: 30 Mar 2005
Location: Suwon
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| Posted: Sun Dec 18, 2005 4:03 am Post subject: |
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| Can you show an actual place that shows the tax rate should be 3.3% Thats what i paid last year, but this year I pay 4%. It's not a big difference, but after being here for a year on my current contract, that would be an extra 200 000 won or more. It adds up, so if anyone has information, that would be great, so then I can show it to my boss. Yes I am in the medical and pension, if that matters. |
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IwalkAlone
Joined: 30 Nov 2005
Location: Daegu
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| Posted: Sun Dec 18, 2005 6:59 am Post subject: |
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| cdn_guy7610 wrote: |
| Can you show an actual place that shows the tax rate should be 3.3% Thats what i paid last year, but this year I pay 4%. It's not a big difference, but after being here for a year on my current contract, that would be an extra 200 000 won or more. It adds up, so if anyone has information, that would be great, so then I can show it to my boss. Yes I am in the medical and pension, if that matters. |
That place doesn't exist. 3.3% is for a completely different tax group. 3% income and .3% resident tax...I would recommend looking over the tax site for korea. Grotto suggests paying the rate mentioned on the withholding tax calculator..which is fine. The important thing is to have proper bookkeeping...meaning records that you actually had x amount deducted. You can then file once the tax year is over. If you give me your salary and deductions I can break it down for you.
website is here: http://www.nts.go.kr/eng/default.html |
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Wrench
Joined: 07 Apr 2005
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| Posted: Sun Dec 18, 2005 7:20 am Post subject: |
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| Argh I don't really understand the website. Where does it actually say what the percentage is? |
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IwalkAlone
Joined: 30 Nov 2005
Location: Daegu
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| Posted: Sun Dec 18, 2005 8:46 am Post subject: |
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| Wrench wrote: |
| Argh I don't really understand the website. Where does it actually say what the percentage is? |
ok...this is gonna be a long post but I have time to kill.
Important for filing
I. resident status
II. annual income
III. all deductions
IV. Class type
I. Resident status
NON-RESIDENT
| Tax Site wrote: |
| Any individual other than a resident is a non-resident, who is liable to income tax only on the income derived from sources within Korea. |
RESIDENT
| Tax Site wrote: |
Principally, a resident is any individual who has his/her domicile in Korea or a place of residence for 1 year or more in Korea. The domicile shall be judged by the objective facts of living relationship, such as the existence of a family living together in Korea and of the property located in Korea. And, the 'place of residence' means the place where a person has dwelt for a long time besides his address, and in which no close general living relationship is formed as the domicile.
A taxpayer who falls within in the following cases is deemed to have a domicile in Korea.
- Who has an occupation which would require him to reside in Korea for 1 year or more; or
- Who has his family in Korea and is likely to reside in Korea for 1 year or more in view of his occupation or assets held in Korea.
A resident is subject to income tax on all incomes derived from sources both within and outside the country. |
II. Annual Salary
I will use 2.0 million won salary for example.
2.0 x 12 = 24 million won
(RESIDENTS)
| Tax Site wrote: |
15 million - 30 million Won -----> subtract 10 million Won
+ 15% of the Salary exceeding 15 million Won |
24 million won - 10 million won = 14 million won
24 million won - 15 million won = 9 million won
9 million won x 15% = 1.35 million
14 million - 1.35 million won = 12.65 million won (this is taxable)
III. Deductions
Basic deduction
| Tax Site wrote: |
| Residents with global income are entitled to annually deduct an amount equivalent to 1 million Won multiplied by the number of persons in the taxpayer's family, as determined below. |
Pension
Health Insurance
Tax rate
| Tax Site wrote: |
10 million Won or less = 9%
10million won - 40 million Won = 0.9 million won + 18% of the amount exceeding 10 million Won |
IV. Class Type
| Tax Site wrote: |
Class A:
Wage, salary, remuneration, allowance, bonus, and any other allowance of a similar nature received in return for services. Income, other than retirement income, received due to retirement |
Tax Credit
| Tax Site wrote: |
500,000 won tax = 55% of total tax credited
tax over 500,000 won = 275,000 Won + 30% of amount over 500,000 Won credited |
This clause means if im paying 1 million won in taxes...I'm over 500,000 won and so i can deduct 275,000 won from my taxes and an additional 150,000 won (30% x 500,000)
Also important......
| Tax Site wrote: |
Generally individual taxpayers use the calendar year as tax year; January 1 through December 31
January 1 through the date of death, in the case of death of a resident
January 1 through the date of leaving Korea, in the case of a resident who becomes a non-resident |
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the eye
Joined: 29 Jan 2004
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| Posted: Tue Dec 20, 2005 12:34 am Post subject: |
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| jacl wrote: |
| the eye wrote: |
| flint wrote: |
IF they are using the National Health Insurance and paying into the pension plan it would be higher. Without it, making 1.9-2.1 million won it should be 3.3%.
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no. countributing to the national pension and health insurance plans will LOWER your tax responsibilites TO about 3ish percent.
the tax witholding calculation provided by the tax website is accurate if you contribute to both plans.
if you don't contibute to either plan , your rate could be over 5.5%. |
That's been proven wrong on another thread. The tax rate is correct on that website. If you contribute to the pension and/or medical then your tax rate is even lower than that. 5.5% is not correct. It's waaaaaaaaay off. |
it was not PROVEN wrong, and yes i have done my taxes in korea. i have personally contacted the KNT Office and received the information I contributed to this thread earlier. |
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jacl
Joined: 31 Oct 2005
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| Posted: Tue Dec 20, 2005 10:26 am Post subject: |
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| Guess I'll just find out when I do my taxes. Best not to worry too much about crap like that anyway. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Wed Dec 21, 2005 5:42 am Post subject: |
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Wrench,
The NTS site doesn't give a percentage directly. You can use the monthly withholding calculator to compute an estimate of your monthly withholding tax. Then divide that amount by your monthly income (salary plus overtime etc.) then multiply by 100 to get the percentage.
The monthly withholding calculator only gives an estimate of your actual tax. It is based on an average person earning the amount you enter. To determine your actual tax you have to use the year end tax form. It could be higher or lower than the withholding calculator tells you.
In the US it is common for workers to have to adjust their withholding amounts either by adding or subtracting dependents or by adding fixed amounts of additional withholding to get the withholding tax correct.
Many teachers here have taxes withheld from their pay. I'm guessing that most never file an actual tax return. Employers often just keep the money withheld directly. However, this can cause their personal or school taxes to be higher in the end. They just pay the teacher's liabllity indirectly. Many schools say that they have filed for the teacher. I doubt they all really do. |
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