Korean Job Discussion Forums

yamyam · Joined: 23 Jan 2006 Location: Kangnam, Seoul

I don't understand how income tax can be as little as 3.5% in Korea. I'm used to paying 10 times that much in Canada. Is that fairly standard across the country or do we fall into some special taxation category b/c we're teaching on an E2?

cruisemonkey · Posted: Thu Jul 06, 2006 1:22 pm Post subject:

Because property tax is (relatively) high.

otis · Joined: 02 Jun 2006

Don't forget sales tax.

pegpig · Joined: 10 May 2005

You also have to remember that in Canada we have 33 million people supporting a land numerous times larger than Korea which has about one and a half times the population.

Hapkido-In · Joined: 24 Jun 2006

I'm not 100% sure, but I think I read an article about this in the Korean Herald that mentioned large corporations here pay have fixed tax rates. Where as in Canada, banks and oil companies that are making billions of dollars a year yet paying failry little taxes because of tax loopholes, incentives, etc. don't get away with that in Korea.

jaganath69 · Joined: 17 Jul 2003

Its because most services fall under the user pays model. Few if any public hospitals, schools are not terribly fancy, welfare is practically non existant and if you want to drive on a major highway, you foot the cost yourself. Korea also makes a killing by saving on its defence burden as they maintain a mostly conscript army.

JAWINSEOUL · Joined: 19 Nov 2005

death from above · Joined: 31 Jul 2005 Location: in your head

because the rich pay their share.. and they don't have to support wars and military bases and economic and military "aid" etc..

RACETRAITOR · Joined: 24 Oct 2005 Location: Seoul, South Korea

SOOHWA101 · Posted: Thu Jul 06, 2006 9:40 pm Post subject:

It really doesn't matter for Americans anyway. I mean in the "getting away with it" sense of not paying bone crushing taxes. We still have to file and pay taxes in America no matter where we are or where we make our money.

Kinda takes the wind out of my sails. Rolling Eyes

ejmlab · Joined: 17 Feb 2005 Location: Pohang

I was under the impression that US citizens only paid income tax on foreign income that exceeded $100,000. Wasn't there a thread recently which suggested that the limit for non-taxable worldwide income would be lowered to $80,000 USD. Still far more than what the average teacher earns.

kiwigirl :O) · Joined: 05 Jan 2006 Location: Bundang

im not entirely sure about this...but isnt it because (for one reason) there is no social security or benefit system for those who are sick/elderly/unable to work etc???? Confused

im sure there are many other reasons for the low tax rate too

SOOHWA101 · Posted: Thu Jul 06, 2006 10:01 pm Post subject:

SPINOZA · Joined: 10 Jun 2005 Location: $eoul

Qinella · Joined: 25 Feb 2005 Location: the crib

If you compare to Canada, there is no socialized health care. Also, health insurance here is mandatory. If you compare to the US, Korea basically has no military presence. The US spends an assload maintaining constant fighting for years/decades at a time, covert operations, military bases everywhere you turn.

My best guess in general is that it has to do with fewer social programs. Interesting question.