Korean Job Discussion Forums

[Mowie]

Could anyone please refer me to the appropriate links concerning income tax for Canadian teachers in Korea? Specifically, I need to better understand how to register for non-residency status and avoid paying Canadian taxes.

Thanks

[Homer]

You didn't register before leaving Mowie?
Your fried my man...canada Fisc will financially rape you in short order...

All jokes aside, go to Revenue Canada or Citizenship and Immigration Canada's web sites. There should be a wealth of information there.
You could also try the Canadian Embassy in Seoul.

The rules for non-residency have changed since I left Canada. They main point for not paying taxes in Canada, besides declaring yourself a non-resident, is to have no or very little assets or revenue earning ventures in your name in Canada (ex: House, credit cards, bank accounts, investments).
Remmember that by law, the Can gov has the option to wait up to five years before letting you know you owe them back taxes, five years while the interest on what you owe runs up.

Also, I think there was a thread on here (or perhaps a sticky?) that provided a wealth of information on this very question...

[IconsFanatic]

I mailed my application for non-residency in a couple of months ago.

I was clear to stress that I would soon be cancelling my Canadian credit cards, that I was keeping a Canadian bank account solely to pay off student loans, and that I was keeping a Canadian mailing address solely for receiving government correspondence.

[prairieboy]

If you do a search you will find the information you need. Specifically a link to the NR73 form from CCRA.

By the way, I received a notice from the Canadian Embassy a couple of months ago...they have moved the embassy to Busan!

You don't have to cancel every credit card, or get rid of your driver's licence. You can even keep your investments and RRSP's (if you've got them) as long as you write that you are considered a resident of Korea for tax purposes.

As I understand it, as long as you are in Korea for one year (most contracts are for a year provided you complete the contract), you are a resident in the eyes of the Korean government. I don't know where there is a link to this information, it's only what I've read on this board.

At the moment I have several ties to Canada, mostly secondary ties, which includes things like credit cards, and I have been granted non-resident status for tax purposes. The reason being soley based on me being a resident of Korea for tax purposes, otherwise I have enough ties to be considered a resident of Canada still.

Fill out the form, make it clear you are paying taxes here and are a resident of Korea for tax purposes and you should have no problems.

Cheers

[TheUrbanMyth]

[Homer]

Also prairieboy, any income earning investments you have back home will open the door for the canadian government to tax you on your Korean income (the difference left over like urban said).

Be careful mate, they have five years to tell you you owe them anything.
Better make doubly sure.

[prairieboy]

Yes, any Canadian income is subjected to tax by CCRA.

And I as I stated, I have been granted non-residency status. Only one agency in Canada can do that...CCRA.

The caveat is that the paper work has to be filed every year...but even if you don't, you can still be granted non-residency status providing you get the forms filled out well before returning to Canada. I waited a full year before filing mine, and made sure I paid my taxes on my Canadian income. When I got my letter from CCRA (I apologize for not saying that in my first post) I was granted non-residency status retroactively to my first arrival in Korea.

Again, it was noted that I had several significant ties to Canada, but because I am considered a resident of Korea for tax purposes, I was granted non-residency status.

People who don't fill out the paper work properly, or at all, or return to Canada and get a job before completing a year in Korea will find themselves in a tough spot with the taxman.

I'm covered, but I've got to get the forms sent in again seeing as I'm staying on another year yet.

My advice is fill out the NR73 form as soon as possible and send it to international tax services in Ottawa.

If they grant you non-residency status, then keep the original letter on file. Get a copy of it to a tax professional and get your taxes done correctly.

Cheers

[IconsFanatic]

[prairieboy]

Thanks dude!

[Mr. Pink]

How long does it take to get a reply from CCRA? I faxed them my forms in November.

I have been in Korea almost 7yrs and figured it might be a good time to do it. I basically said I won't be going back to Canada again for work purposes.

About taxes, you can't pay what they don't know you made...unless you are dumb and have a load of cash sitting in a Canadian bank account...

[prairieboy]

For myself, it was a couple of months after I mailed in the forms.

Cheers

[sprite]

i'm so not looking forward to tax season!
i was out of the country for five years, and in the end, was still considered a resident because my ties to canada outweighed my ties to wherever i was working. yuck.
however, the very nice man told me that i could appeal, because they had counted possession of a driver's license and renewal thereof as two ties, and ditto for my passport.

the problem was that i sent off all the forms a year before i left korea. in my cover letter, i included my email addy, my current work address, and my parents home adress, since i was going to visit them.
nothing.
for a year, nothing.
i finally returned to canada, and called them up. turns out they'd ignored my request re: addresses, and sent the letter to the address on my banking file; a place i worked in korea in 1998. how they could go through all the forms and not notice that i had moved three times since then is beyond me...

so. i still haven't appealed. if they try to get blood from this stone, i may just file for bankruptcy.



and yes, i've corrected the address my bank has for me. i wonder what other postal gems are waiting for me in taejeon?