Korean Job Discussion Forums

[bcarlstrom]

I would like to say that I work for Pagoda in Gangnam and I receive a tax return every year.

I received over three million Won for my return from last year.

Those of you who are still fighting with your bosses over this issue: Do not give up!

I took my old boss to the NTS a few years ago. Armed only with the paystubs I received from him, I was able to get the money he owed me.

good luck

[Ut videam]

There's a difference between a tax return and a tax refund.

A tax return is a document filed with a taxing authority (usually annually) that declares a person's income, deductions, etc. It serves to determine and settle the person's tax liability for the year, i.e., taxes payable or refund due.

A tax refund is a payment received from the taxing authority when a person's tax payments during the year have exceeded his tax liability. The taxing authority refunds the difference between taxes paid and taxes due when the former is higher than the latter.

If you're subject to Korean income tax (i.e., you aren't in your first two years with a public school or university), you should probably be receiving a refund each year. That's because employers withhold at a standard rate based on your income, the same as they do for Koreans. Non-Koreans, however, receive an automatic 30% income exemption�in other words, you are only taxed on 70% of your income. This virtually guarantees that too much tax is withheld and, as a result, a refund is due.