|
Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
|
| View previous topic :: View next topic |
| Author |
Message |
TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
|
 Posted: Thu Aug 03, 2006 11:24 pm Post subject: |
 |
|
| jacl wrote: |
[. (1) The tax office's job is to tax you, not let things slide because of industry standards.
And what's this? (2) Employers not passing the tax because of a competitive job market? Either you're full of it or the guy at the tax office is full of it. |
(numbers are mine)
1. The tax office can't tax you, if your employer is not reporting it though. That's under the radar.
2. If an employer started taxing housing and airfare, who do you think would work for him? |
|
| Back to top |
|
 |
jacl
Joined: 31 Oct 2005
|
| Posted: Thu Aug 03, 2006 11:28 pm Post subject: |
|
|
http://www.efl-law.com/tax.php
| Quote: |
iv) I receive additional salary for 'housing allowance.' Is it taxable? When the university/employer purchases or rents a residence under its name and provides it to expatriates, the housing benefits are not taxable for those expatriates.
When the university gives expatriates housing allowances, then the allowances are taxable as additional salaries. However, foreign service allowances, including housing allowances, are excludable up to one sixth of total remuneration (salary + bonus + allowances). |
|
|
| Back to top |
|
|
Grotto
Joined: 21 Mar 2004
|
| Posted: Thu Aug 03, 2006 11:35 pm Post subject: |
|
|
If the guy at the tax office said:
It took a while to get an english speaker, but i was suprised he was quite fluent so I was able to state my case.
In no uncertain terms he told me that as employees we can be held responsible for tax on air tickets and apartments. He said this issue has come up before with english teachers, and that such taxes are usually born by the employer because:
1) the tax amounts to a negligible amount
2) not passing the tax is a general practice in the industry and going against general practice makes the employer uncompetitive in the job market.
then that would be the last word on it for me..........however.....I would check to make sure that the money being deducted from your cheque ws making its way into the taxmans pocket instead of your bosses.
I do know that if you are given a cash housing allowance then it is taxed as income....it would stand to reason that the apartment could be taxed as well.
I would argue the amount of the tax...3.3 seems high.
Basically, he said if it's not in the contract, you can be legally responsible.
There is your loophole though...as its not in your contract....your boss has no legal right to deduct it from your salary...that would be a job for the tax department itself!
The law itself is quite specific about what your employer is legally allowed to deduct from your pay...
| Quote: |
Article 18 (Definition of Wages)
The term ???wages??? used in this Act means wages, salary and any other kind of money or valuables, regardless of its titles, which the employer pays to a worker as remuneration for work. |
is an apartment a 'valuable'?
| Quote: |
Article 24 (Statement of Working Conditions)
An employer shall clearly state wages, work hours and other working conditions to the relevant workers at the time when he enters into a labor contract with them. In this case, the matters concerning constituent items, calculation methods and payment methods of wages shall be specified in accordance with the methods prescribed by the Presidential Decree. |
I would show your boss this section of the labour standards act....without seeing your contract I wouldnt be able to say whether or not he violated a calculation method or not. If it is not stated clearly he should not be able to deduct it from your cheque....you may have to pay them to the tax office but thats their mandate...not his! |
|
| Back to top |
|
|
TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
|
| Posted: Thu Aug 03, 2006 11:41 pm Post subject: |
|
|
| Grotto wrote: |
If. He said this issue has come up before with english teachers, and that such taxes are usually born by the employer because:
1) the tax amounts to a negligible amount
2) not passing the tax is a general practice in the industry and going against general practice makes the employer uncompetitive in the job market. [/color]
! |
So IT IS TAXABLE...but the employer is paying it.
Just a thought. Maybe that's why most contracts state that 5% is the tax rate, they are trying to pass it on to us. |
|
| Back to top |
|
|
jacl
Joined: 31 Oct 2005
|
| Posted: Fri Aug 04, 2006 12:02 am Post subject: |
|
|
http://times.hankooki.com/lpage/biz/200211/kt2002112118561310750.htm
| Quote: |
Dear Mr. Lee,
I am an English professor teaching at a university in Pusan. I just thought I would let you know that I find your columns quite readable and informative. I especially liked your column some time ago about the pension issue for Canadians.
I have two questions for you that are very important to all expatriates living in Korea, especially those who teach at universities.
Question 1: Is a person's bonus/severance pay taxable?
Question #2: Is a benefit, like monthly housing allowance taxable?
When I was an English Program in Korea teacher (MOE sponsored program), my monthly housing allowance was never taxed. I asked around and discovered that for the most part, most people's monthly housing allowances are not taxed.
However, at my university, foreigners are being taxed on their monthly housing allowances. Since a monthly housing allowance is a benefit, if it is taxed, shouldn't foreign teachers who are provided with housing have to pay a fair rental market value of tax?
Any information concerning this issue would greatly be appreciated.
Dear Mr. Guilfoyle,
Thank you for your interest in my tax columns. I believe your questions must be very common concerns for expatriates in Korea.
First, bonuses are taxable in a same way as ordinary basic salaries.
Accordingly, when you receive a bonus, you will unpleasantly find that your withholding salary tax increases more than the bonus amount. This is because of the progressive income tax structure.
Severance pay is also taxable but the income tax amount would be less than half of ordinary salary tax. It is because half of severance pay is tax- exempted and the remaining half is spread over the number of service years to apply lower tax rates.
Second, regarding taxability of housing allowances, your confusion is quite understandable. But both cases are right, sometimes it is taxable and sometimes not. When the university purchases or rents a residence under its name and provides it to expatriates, the housing benefits are not taxable for those expatriates.
When the university gives expatriates housing allowances, then the allowances are taxable as additional salaries. However, foreign service allowances, including housing allowances, are excludable up to one sixth of total remuneration (salary + bonus + allowances). |
|
|
| Back to top |
|
|
jacl
Joined: 31 Oct 2005
|
| Posted: Fri Aug 04, 2006 12:07 am Post subject: |
|
|
| TheUrbanMyth wrote: |
| Grotto wrote: |
If. He said this issue has come up before with english teachers, and that such taxes are usually born by the employer because:
1) the tax amounts to a negligible amount
2) not passing the tax is a general practice in the industry and going against general practice makes the employer uncompetitive in the job market. [/color]
! |
So IT IS TAXABLE...but the employer is paying it.
Just a thought. Maybe that's why most contracts state that 5% is the tax rate, they are trying to pass it on to us. |
No, it isn't. |
|
| Back to top |
|
|
Grotto
Joined: 21 Mar 2004
|
| Posted: Fri Aug 04, 2006 12:10 am Post subject: |
|
|
great link Jacl!
who is this Mr Lee?
Perhaps he could provide us with some links showing clearly so this whole thing is over once and for all.
I agree that a housing allowance is taxable but provided housing isnt! |
|
| Back to top |
|
|
jacl
Joined: 31 Oct 2005
|
| Posted: Fri Aug 04, 2006 12:37 am Post subject: |
|
|
My salary is 2.3 million Won/month. If I were given a housing allowance it would have to be more than 423,583 Won/month before being taxed according to EFL Law and Mr. Lee of the Korean Times.
Although I already provided a link from NTS that proves housing allowances are non-taxable. The amount of the housing allowance would, of course, be limited. It only makes sense.
From NTS. I'll post this again. Under Non-Taxable Income
| Quote: |
Payments in the nature of reimbursement for expenses actually incurred (including such
items as overseas service allowance, housing allowance, etc, received by foreign wage and
salary earners) |
Overseas service allowance is service in Korea, Bright Eyes. So that could include air fare and maybe even lunch. |
|
| Back to top |
|
|
jacl
Joined: 31 Oct 2005
|
| Posted: Fri Aug 04, 2006 2:00 am Post subject: |
|
|
| Who's your daddy? |
|
| Back to top |
|
|
jacl
Joined: 31 Oct 2005
|
| Posted: Fri Aug 04, 2006 2:01 am Post subject: |
|
|
| Grotto wrote: |
great link Jacl!
who is this Mr Lee?
Perhaps he could provide us with some links showing clearly so this whole thing is over once and for all.
I agree that a housing allowance is taxable but provided housing isnt! |
He's a tax expert for the Korean Times. |
|
| Back to top |
|
|
jacl
Joined: 31 Oct 2005
|
| Posted: Fri Aug 04, 2006 2:06 am Post subject: |
|
|
| crescent wrote: |
Actually Jacl, I think you may want to keep that diaper because your going to **** your pants. I went to the tax bureau on Friday afternoon and they explained everything in detail.
It took a while to get an english speaker, but i was suprised he was quite fluent so I was able to state my case.
In no uncertain terms he told me that as employees we can be held responsible for tax on air tickets and apartments. He said this issue has come up before with english teachers, and that such taxes are usually born by the employer because:
1) the tax amounts to a negligible amount
2) not passing the tax is a general practice in the industry and going against general practice makes the employer uncompetitive in the job market.
I told him that my contract doesn't make any mention of having to pay it. His reply was that such an omission actually works against me. The only way one would be exempt by law is if such a stipulation was made in the contract. By default, the apartment and airtickets are taxable benefits as they are given in return for services.
Actually we debated the issue a bit and he was getting impatient when i told him the contract mentions 'free' apartment. His retort was "Did it say tax free?"
Basically, he said if it's not in the contract, you can be legally responsible.
Sorry, 'the eye' and 'gord' are correct. |
Sorry, but the eye, gord, and you are all wrong.
Plane ticket is an overseas allowance, and free accomodations is a housing allowance. Both of which have been deemed non-taxable by NTS. I already proved it, but the three of you are ignoring and misinterpreting what NTS says.
The guy at the tax office.  |
|
| Back to top |
|
|
jacl
Joined: 31 Oct 2005
|
| Posted: Fri Aug 04, 2006 2:21 am Post subject: |
|
|
| Gord wrote: |
| jacl wrote: |
Ok, if you want further proof, check out the NTS website:
http://www.nta.go.kr/eng/publish_book/valgan_book_view.asp?news_seq=5471
Download:
File Download: INCOME TAX GUIDE 2006.pdf
Scroll down to:
PART II Outline of Individual Income Tax System/
Income/
B. Non-taxable Income/
Wage and Salary Income and Retirement Income (page 39)
Here, it clearly states that housing allowances are tax exempt.
| Quote: |
Payments in the nature of reimbursement for expenses actually incurred (including such
items as overseas service allowance, housing allowance, etc, received by foreign wage and
salary earners) |
Go to the tax office and show him that in the guide. |
That refers to people working for Korean companies and working outside of Korea. When working in Korea, one is classed as receiving a domestic wage and this exemption does not apply. |
No, it doesn't. It's for expatriates working in Korea. |
|
| Back to top |
|
|
the eye
Joined: 29 Jan 2004
|
| Posted: Fri Aug 04, 2006 2:39 am Post subject: |
|
|
You're really scrambling now. The image you're painting of your self...man, stop while you still have some salvageable self-respect.
Your problem is jacl, you need to get some life experience. Learn some terms relevant to your argument. Otherwise, you just look stupid.
| Quote: |
received by foreign wage and
salary earners) |
A foreign wage and salary earner is someone earning money from abroad. Not someone working in Korea.
Get it?
One more time. "FOREIGN WAGE AND SALARY EARNER"
Not 'FOREIGN EMPLOYEE'... nut... it reads, THE EARNER OF A FOREIGN WAGE OR SALARY.
You teachee the Engrishee?
Last edited by the eye on Fri Aug 04, 2006 3:03 am; edited 1 time in total |
|
| Back to top |
|
|
jacl
Joined: 31 Oct 2005
|
| Posted: Fri Aug 04, 2006 2:56 am Post subject: |
|
|
| the eye wrote: |
See, the problem is jacl, you need to get some life experience. Learn some terms relevant to your argument. Otherwise, you just look stupid.
| Quote: |
received by foreign wage and
salary earners) |
A foreign wage and salary earner is someone earning money from abroad. Not someone working in Korea.
Get it?
One more time. "FOREIGN WAGE AND SALARY EARNER"
Not 'FOREIGN EMPLOYEE'... nut... it reads, THE EARNER OF A FOREIGN WAGE OR SALARY.
You teachee the Engrishee? |
Not. Your the one who needs English lessons.
It's "foreign earner", not "foreign wage". Grab a clue and admit you are wrong. The reason they say "foreign" is because it doesn't apply to Koreans. |
|
| Back to top |
|
|
the eye
Joined: 29 Jan 2004
|
| Posted: Fri Aug 04, 2006 7:35 pm Post subject: |
|
|
| jacl wrote: |
Not. Your the one who needs English lessons.
It's "foreign earner", not "foreign wage". Grab a clue and admit you are wrong. The reason they say "foreign" is because it doesn't apply to Koreans. |
quote="jacl"]Not. Your the one who needs English lessons.[/quote]
Typical. This is too easy.
| Quote: |
| It's "foreign earner", not "foreign wage". Grab a clue and admit you are wrong. The reason they say "foreign" is because it doesn't apply to Koreans. |
Where does it say 'foreign earner'? I see foreign wage and salary earner. That's what it means.
No need to leave out words in your manipulation.
Just take it literally. It pertains to the fact that we can have income from outside sources while we reside here.
The two types of income are treated differently.
Furthermore, what is the title of the document?
"Individual Income Tax and Benefit Guide
for Foreigners 2006"
So why would Koreans be reading it?
I'm starting to enjoy embarrassing you.
When you come back, make sure that diaper isn't cutting off the circulation to the part of your anatomy that does the thinking. |
|
| Back to top |
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
