Korean Job Discussion Forums

[yingwenlaoshi]

When claiming health insurance contributions when filing taxes, do you claim all 4.77% (yours and your boss's contributions) or only your share of 2.385%. On the simplified tax calculator on NTS's website, it only says to claim what was deducted for your health insurance on your paycheck. For pension, it seems it's all 9% (yours and your boss's).

[yingwenlaoshi]

*bump*

[yingwenlaoshi]

Does anyone know?

[quilter]

You can claim your bosses pension contribution?

[tob55]

Just had a discussion with my wife on this issue. According to the current tax laws, you can only list the insurance money and pension amounts you personally contribute into your plan. This is why people should look into getting their self a tax point credit card that can be used for purchases above 5,000 KRW when using cash. It also pays to have a BC or cash / check card from your local bank that lists the taxable money that has been paid by you during the calendar year. Every point adds up and it will pay dividends if you are someone who has a lot of out of pocket cash expenses. It will also tell you who to steer clear of when making purchases. Many vendors in the street markets do not pay taxes so they do not accept the tax point credit card when accepting money. Best to work only with legitimate vendors who are abiding by Korean tax laws.

[yingwenlaoshi]

[tob55]

I'll take a look at the most recent 2007 publication I received from the Korean Tax Office. I was just looking through it the other day for a similar question. Give me a few minutes and I'll have an answer for you. Look for the edit to this thread or I'll post another one with the citation.

[tob55]

According to the 2007 Tax guide, you can only claim the deduction for your contributions. The language is screwy which I see now what you are talking about, but after going over it and double checking with the tax form, I am right. There are several options for special deductions you can take, but unfortunately, you are only allowed to claim your own contributions towards medical and pension. Unless something changed in the last 3 months of 2007, this is current.

[yingwenlaoshi]

[tob55]

The problem with the system the way it is set up is that the boss is going to use money that was allocated for your salary anyway. It is really no money out of their pocket, because they receive the full funding amount for your whole year's wages at the beginning of the school contract (at least in public school it is this way). Then they take out the matching medical and pension funds which rightfully are part of the teacher's salary packet from the MOE, and it looks like they took school money to pay for it.

My school once upon a time tried to bust my chops over paying such "exorbitant fees" for my position, UNTIL I found out about how the funding mechanism worked. From that point on they were aware of the fact that I knew what was going on and never threw it in my face again.

[Tokki1]

Do people actually do taxes here?

[yingwenlaoshi]

[georgewallas]

[Tokki1]

[yingwenlaoshi]