Korean Job Discussion Forums

[nourozi]

Im confused about this part on my contract.

Article 14 (Other Benefits)
? Employees with the exception of Canadians, shall be eligible for
exemption from paying Korean income tax during the period of the first
two years if he/she provides the following documents to the employer
before the first payment of salary:

1) "Residence Certificate" issued by a competent authority of
employee's resident country

2) "An Application for Tax Exemption" on non-resident's Korean
source income provided under the Korean Tax Treaty.


How do I get the Residence Certificate and the application for tax exemption? Does this mean I dont have to pay any tax?

[Rusty Shackleford]

There is no such thing as a "Residence certificate", in NZ. The tax office can be really douchey about it though. My co-teacher managed to talk the official into accepting my CRC, as it had my address on it. He was adamant that he wanted a residents certificat for about 20mins, though.

the other part is just an app form that you can probably download from the website or get from the tax office.

[nourozi]

So do you pay tax?

[blackjack]

If you don't pay tax in korea then you have to pay it in New Zealand, do you want to pay ~2% or ~30%.

I am pretty sure that clause is mainly for americans, you don't pay tax on income under ~$80,000

[Otherside]

That clause is for all teachers. (Except Canadians, haha)
South Africans pay NO income tax on Income earned abroad (providing you meet certain criteria, which would be met by a 1 year contract in Korea). So an Income tax exemption is pretty sweet.

To the Kiwi OP, you dont have to pay tax. Just explain your situation to the school admin, and they'll usually accept any old document as proof of residence.

[blackjack]

[Rusty Shackleford]

[John Risky]

I'm renewing my contract and beginning my second year in Korea. My school has also asked for a residency certificate. I'm from the UK, do we have such a thing?

[lucasoconnell]

i'm a kiwi who's just started teaching in korea at a public school. the contract says in article 14 that to avoid paying tax in korea (if youve worked less than 2 years there and are not canadian) you need 2 things:

1) a residence certificate issued by a competent authority of your resident country........kiwis can apply for something similar with an IR 886 form from this website.....

[url]http://www.ird.govt.nz/forms-guides/title/forms-n/ir886-form-nz-tax-res.html?id=righttabs[/url]

you have to download it, fill it in and send it off to IRD which is bloody annoying coz they're soooo ridiculously slow.....but if you havent left nz yet then it might be a good idea...........but you could just try your luck at doing it a different way if you're already in korea....i'll try this....what happens probably just depends on the person you get sitting behind the desk at the local korean tax office on that particular day.......but it may be easier to do it this way if you're already in korea.....if you do this, go with a co-teacher or someone who speaks korean (you may have to get them to do alot of convincing for you), and take a form that shows your address in nz (or wherever) like an internet banking printout or something.....it might work if you're lucky.....or register with IRD online, print out your details, and take them to the tax office........

for kiwis.....you can find out yourself if you are a nz resident or non-resident for tax purposes by reading the IR 292 form. it can be downloaded here.....

[url]http://www.ird.govt.nz/forms-guides/title/forms-n/ir292-guide-nz-tax-residence.html?id=righttabs[/url]

for people from other countries that have a tax treaty with korea, there is some useful info on this website........

[url]http://www.korvia.com/index.php/free-income-tax-for-public-school-teacher.html[/url]

2) Application for tax-exemption on non-resident's Korean source income provided under the Korea tax treaty........you can download that form in english and korean (probably best to do both so your employers understand it)..... and then take it (along with your co-worker and whatever form number 1 may be) to your local tax office in korea......form 2) can be downloaded at this website......

[url]http://www.nts.go.kr/eng/resources/resour_41.asp?top_code=R001&sub_code=RS04&ssub_code=RSD1[/url]

remember in the contract it says all you need to do is provide these docunents to your [i]employer[/i] before your first salary payment.....not to the tax office.....so if you do it on the 24th of the month, then that should be ok....if it isn't, you can make a complaint and cite the contract as the reason........make sure both forms are copied before they are taken to your tax office (your school should have copies, and from there they will probably send them to your provincial education office simply because the provincial offices love to have paper they never look at), and make sure your school knows well that you've done this whole tax exemption application thing, so that they don't deduct tax from your first salary payment......that is all.....

[Cheonmunka]

I'm wary about this one. NZ wants all your worldly produced income to be taxed. However, there's a double tax treaty so can claim deduction for NZ tax to pay based on tax paid in Korea.
Or, become a non-resident for tax purposes for NZ while in Korea and pay Korean tax only.
Everyone everywhere pays tax. Why would there be an exemption from paying Korean tax?