Korean Job Discussion Forums

[zappadelta]

Yea, my friend had a C-4 visa. I guess it's a short term type visa. He didn't have a visa before, and he came here on a C-4 to work the camp and then stay here after the camp was finished to look for a job. So, the only good thing about this situation is they paid for flights. So, he had a free ride over to look for jobs.

[jacl]

I don't know anthing about the C4 visa. Maybe there is some wort of 27% tax or whatever it is/was, but it could be that they were screwed and the tax was too high. I don't know.

If they got pay statements (or if they didn't) and they're coming back to Korea (or staying) then maybe they can get the money back. If the tax office said that there was nothing they can do then maybe it's legit. Or they didn't look into it enough.

[bellum99]

Can you teach English on C4 visa? It isn't illegal?

[bourquetheman]

A C4 visa is a temporary work visa (I believe for 90 days) and is issued for people who are simply flying in here to work short time, e.g. a winter camp. I know this because I have taught at several camps and this was the case with the people out of country who were here to do the camp. It's non-transferable, meaning even if the camp is says 2-4 weeks long, you can't go teach with the remaining time left on your C-4 visa.

[zappadelta]

A temporary work visa. It sounds like the business that ran the camp had them classified or set up as entertainers, and not teachers.

[vox]

Hey I just wanted to let you know what I found today, available in the 2005 Income Tax Guide for Foreigners and the Tax Treaty with Canada

From 2005 Income Tax Guide for Foreigners
p. 59 Income Tax Treaty has priority over domestic law. If the Domestic Source Income is not based on the tax treaty and domestic law, it is non-taxable in Korea. In this case the Domestic Source Income is Educator's salary permitted on a c-4 visa (so I'm not sure.) (But it also says that if the income source is not considered a domestic business place that the income tax can only be withheld.) The place where our income is derived is a university, which in Korean law is different from a business place.

p. 61 says that 'services' and 'professional services' count as business income for non-residents, but Article 14 of the Canadian tax treaty says that such services are taxable unless the services are rendered in the other Contracting State (I think this means if you are an ESL teacher back home) in which case the income may be taxed in Canada and I believe the tax would be a lot less in Canada.

However regardless of whether or you not teach ESL back home, Article 21 of the Canadian tax treaty says that the tax in Korea can not be more burdensome than the tax that would be imposed in Canada. So we may need to pay more than 3.3% tax, but definitely less than 27.5% tax.

Here is the language of the relevant articles:
-------------------------------------
From Canadian tax treaty with Korea
http://www.nts.go.kr/menu/users/ntseng1/nat_a_001_eng27.htm

Article 14 Personal Services
(1) Subject to the provisions of Articles 15, 17 and 18, (Article 15 =Directors' Fees Article 17 =Pensions and Annuities Article 18 =Governmental Functions)remuneration derived by a resident of a Contracting State in respect of personal services (including professional services) shall be taxable only in that State unless the services are rendered in the other Contracting State.
If the services are so rendered, such remuneration as is derived there from may be taxed in that other State.
(2) Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of services rendered in the other Contracting State shall be taxable only in the first-mentioned State if:
(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned; and
(b) the remuneration is paid by, or on behalf of, a person who is not a resident of the other State; and
(c) the remuneration is not borne by a permanent establishment which the person paying the remuneration has in the other State.
(3) Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State, shall be taxable only in that State.

Article 21 Non-Discrimination
(1) The nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected.
(2) The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favorably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.
(3) Nothing in this Article shall be construed as obliging a Contracting State to grant to resident of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.
(4) Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of a third State, are or may be subjected.
(5) In this Article, the term "taxation" means taxes which are the subject of this Convention.

[nikkijsullivan]

Whats your friends name??? -or are you 'playing' as the friend??? If so.... this is totally a steve thing to do!!!!

Anyways, to set the situation correct...

Most people signed up because they provided free flights although the people that paid and were getting reimbursed had major hassels and ended up chasing the boss around in circles for a couple of days until he actually 'did a runner' on them...nowhere to be seen for a few hrs.... we should have known then!!!

Free flight, free accom, free dog food and trips to everland and 1.45m won wasnt bad... i mean yeah i want my bloody money but at the end of the day, it was a good chance for me to see korea without being stuck signed into a year contract (which i would have probably broken!) and to know not to be dumb enough to sign another contract with the scheming bastards ever again.

So all in all, it was a free trip and come on, the work was hardly that strenuous!!!

So yeah we were all dumb as hell to sign up for a contract that was a total rip-off but hey, apart form the last couple of horrible days, I really enjoyed myself and totally miss all the people I was fortunate enough to meet...

[vox]

Hey Nikki

This is what I found out today - there's 110,000 KRW coming back to each of us so far. There may be more depending on whether I can get a correct interpretation of a tax treaty article for Canada. Have you checked your country's tax treaty with Korea? I spoke for a long time with the foreign tax office aide and essentially the matter below needs interpretation clarification but if it falls on my side I'm looking at about 320,000 coming back. For any Canadians reading this, the issue at hand is the reading of the following

From the Canada-Korea tax treaty Article 21 (1)
Article 21 Non-Discrimination
(1) The nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected.

If anybody can shed light on that I'd be really grateful. I think it means if a Canadian comes and works in Korea he/she can't be taxed more than he/she would have been taxed for the same work back home, in my case 14%

[zappadelta]

No, I am not Steve, nor is my buddy Steve. My buddy was at the camp though.

[angelgirl]

g'day

I think you guys were taxed as foreign workers ie. non residents. Go to

http://nts.go.kr/front/service/refer_cal/jungsan2005/eng/refer_2005jungsan_eng.asp

Those with alien cards would not be taxed as much (and weren't).

This is as much as I've been able to figure out.


Many lessons have been learnt by everone.
a) the tax rate should have been stated in the contract
b) the hourly rate should have been stated in the contract
c) make sure everything you agree to teach is in the contract - don't accept verbal arrangements

I REALLY don't think anyone tried to rip any one off - just basic lack of communication and information.

[dbee]

I say sue'em

[dbee]

OOPS ...

[zappadelta]

[dbee]

There are managers and recruiters out there that would sell their granny if they thought that they could get a good price