Korean Job Discussion Forums

[Seoulman69]

With the recent changes to tax for foreigners could we have a sticky for tax related questions?
I have never filed a tax return in my life and don't know the first thing about tax deductions. What is happening regarding the tax changes? Should I use my debit card instead of paying cash? When should I file my tax return?

Can anyone shed some light on this issue?

[wotsit2004]

im really confused about the tax exemption that can be claimed by public school teachers. im from the uk, and like many other countries, the uk has a double taxation agreement with korea. i thought this meant that i would not have to pay tax to both countries, but i would have to pay tax to one of the countries. so i thought that if i submit a uk residence certificate, i am liable to paying uk taxes. (american citizens do not have to pay tax when working abroad as long as they earn less than $90000 or so, but i dont think theres a rule like that for british citizens. this means that when american citizens submit a US residence certificate, they may be liable to US taxes, but just dont pay any because theyre not earning more than ~$90000. so it could be different for americans.)

when i checked the UK-korea double taxation agreement online, it said:

Subject to paragraph (2) of this Article, an individual who visits one of the Contracting States for a period not exceeding two years for the purpose of teaching or engaging in research at a university, college, school or other similar educational institution which is recognised as non-profit seeking by the Government of that Contracting State, and who immediately before that visit was a resident of the other Contracting State, shall be taxable only in that other State on any remuneration for such teaching or research for a period not exceeding two years from the date he first visits that State for such purpose.

this looks like i have to pay uk taxes if im exempt from korean taxes. (and uk tax is much higher than korean tax.)

HOWEVER.. when i called the korean national tax service, they told me i would be exempt from paying uk and korean tax, and that if a korean comes to the uk to work in education, theyll also be exempt from both uk and korean tax.if i declare myself a non-resident of the uk, i dont think i will be liable to uk taxes if im out of the country for a full tax year. the korean national tax service advisor told me that the residence certificate just proves that i have been a resident of the uk - not that i still am a resident; and that it whats important; and thats why im not liable to uk tax.

so this seems to be contradictory to what i read in the double taxation agreement. i dont want to be exempt from korean tax if it means i will have to pay uk tax, so im not sure whether or not i should hand in a uk residence certificate to become exempt from korean tax.

can anyone help explain this to me?

[isitts]