Korean Job Discussion Forums

Picotrain · Joined: 16 Nov 2005

My employer says that I have to pay 4% Korean income tax, which works out to be around W80,000. The National Tax Service website says that someone with a salary of W2,000,000 per month should pay much less (around W28,950) per month. He said I have to pay more because I'm not paying into a pension plan and I don't have medical insurance. I doubt this is the case, but I would like an explanation and a possible solution from someone who knows more about it than I do, if possible. Any takers for my problem?

Link for the National Tax Service income tax calculator:
http://nts.go.kr/front/service/refer_cal/gani/refer_gani_eng.asp

Any help would be appreciated.

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

jacl · Joined: 31 Oct 2005

If you don't pay pension or medical, then your taxes are actually less. Pension and medical are deductible.

Instead of your boss losing 90,000 (pension), 45,000 (medical) and 30,000 (tax), a total of apx. 165,000, he's making 80,000 on the taxes he deducts from your salary.

Niiiiiiiiiiiice.

In the meantime, you lose out on medical, 90,000 in pension benefits (if you're Canadian or American), and over 50,000 in taxes. Not to mention that he's not forwarding your deductions to the tax office.

Anyway, he's making 80,000. You're losing 140,000 and health insurance.

Double niiiiiiiiiiiiice.

Get thee to his office and kick up a stink.

Gooooooooooooooooood times!

Picotrain · Joined: 16 Nov 2005

So is my calculation right in how much taxes I SHOULD pay? How much do you pay (if you don't mind me asking)?

Grotto · Joined: 21 Mar 2004

your calculation is correct! Dont let him bullcrap you with his lies! Tell the SOB you are going to the tax office(do this after payday and make sure you get a paystub detailing all your deductions!)

Call in sick and go to the nearest tax office(preferably with a Korean friend) file suit and nail him!

jacl · Joined: 31 Oct 2005

ontheway · Posted: Sun May 21, 2006 7:06 am Post subject:

If you are from the US or Canada, then maybe you want the pension tax to be deducted and the employer should match it. You should also get health insurance, because you might get sick or hurt and then what? If you are getting neither then probably your boss is withholding tax and keeping it for himself. Your income taxes are way too high. Get covered and get legal.

If you're NOT from a country that refunds the Pension then maybe you just want to cut a no taxes deal with the boss. He's already got you included in an under the table deal. Might as well get your share. Illegal and risky without health insurance, but you could get more cash.

Picotrain · Joined: 16 Nov 2005

Thanks for the ideas, all. Does anybody know where I can find, preferably on the gov't website, an article specifying exactly how much income tax I should be paying (other than the calculator and in English). In case you need personal details, I have no dependents and I make 2.0 million won/month.

Benbby · Joined: 06 Feb 2006

I tried the link for the Korean taxes and I don't get a result that makes sense to me.
I'm quite interested as I got a job offer at 2 million won.

Why do schools pay less that teach adults?