Korean Job Discussion Forums

[Kurtz]

I was just informed from my co-worker that for tax reasons I have to show how much money I've spent.
I always use cash, but I'm now told I should have used a credit card or a card which I have to swipe and then give my phone number so my money spent for tax reasons can be accounted for.
Anyone know what this is about? were you informed at all?

[Ultimo Hombre]

Sounds fishy. I've never heard of anything like this.

[Xuanzang]

I`ve never heard anything about that. I know Korean collect the slips for their annual write off or whatever but not for us.

[ajgeddes]

The thing about the phone number and tax reasons is true. I don't know if it work for foreigners though. I think the more you spend the more tax money you get back.

[Kurtz]

Being the first long noser in this school, they don't know how to treat me in the pay room when it comes to doing the tax, like a Korean or not like a Korean. I'm as confused as they are.

[jvalmer]

Many Koreans are ignorant to the fact that it's tough to get banking services. But, I think they want to see how much you spent using a check card, to see if you're eligible for a tax rebate.

[Straphanger]

[LostinKSpace]

If you use a credit card then you can demonstrate that you have spent x amount of money in the year, the more that you spend the bigger potential for a larger rebate.

I was informed this last year, and have used a credit card for everything this year, am waiting to see what will happpen but I don't expect too muc.

[Kurtz]

What is a check card? I'm kind of interested why this is all being mentioned now to me by my handler after working in this school for 10 months "oh I'm sorry, I didn't know!"

[justaguy]

Check card = Debit card

[Straphanger]

[Kurtz]

Ok chaps, thanks for clearing that one up, have a nice day

[skconqueror]

[suadente]

I think things were translated to you poorly. It's not swipe card AND give phone number, it's use your card OR give your phone number. They type it into the credit card machine if you paid cash and give you a receipt.

You have to register your phone number. I don't know where though.

I've heard that it's better to use a credit card than a check/debit card when it comes to taxes, but it was hearsay so ask an accountant on that one.

Oh, and you can get a credit card if you work for a reputable company/academy. I can pay an equivalent two years of rent with my three (international) credit cards. In fact, I was forced to apply for one of my credit cards because I bought my former academy's pre-ipo stock. Woori gave me a 5 million won limit, and I didn't even want it. My Samsung Card gives me points for every won that I spend, so I charge everything now. I get double points for automatic bill transfers, so I don't manually pay any of my bills anymore. It's convenient. But, I initially didn't want that one either. The lady came walking in one day and asked if we wanted to apply, we said that we couldn't get cards because we're not Korean, she insisted, and I got another 5 million that I didn't want. And my Lotte Card is also a transit card so I never have to worry about recharging it. It automatically bills my bank account every month. I didn't want that one either, but my (Korean) wife thought it was a good idea to have.

Give it a try. I'm on an F visa, I don't know if it works with E-2's.

Hyundae Card is really hard to get, though. My wife can't even get one, and she's making more than average.

Anyways, I've used mine on my last five international vacations in five different countries. It's convenient.

[Kimsmith]

Foreigners can apply for the cash receipt card. You have it swiped in a store for each purchase you make. At the end of the year, depending on ow much you have spent over the year, it may entitle you to a tax refund. You'll probably need a Korean to help you set it up.

http://english.chosun.com/w21data/html/news/200812/200812020010.html
Year-End Tax Declaration Due a Month Later
Beginning this year, income earners can submit their year-end tax declaration by the end of January or early February next year, In the past, it was due by the end of December or early January.


The declaration allows earners can get deductions for medical expenses, credit card payments, cash receipts, or check card bill payments they spent until December this year.

According to guidelines released by the National Tax Service on Monday, the scale of deduction for credit card expenses has also been readjusted. Until 2007, a deduction for the credit card expenses or cash receipts had subsidized a maximum of 15 percent of the amount exceeding 15 percent of annual income. This year, the deduction will subsidize 20 percent of the amount exceeding 20 percent of annual income.

Claimants can benefit from tax deductions for 20 percent, or up to W3 million per quarter (US$1=W1,444) on savings products bought after Oct. 19, provided they run for more than three years and invest more than 60 percent of assets in domestic stocks.