Korean Job Discussion Forums

[CA-NA-DA-ABC]

Okay, so I've searched around everywhere for answers and even tried reading the National Tax Service website, until my brain started farting and bailed on me. So please helpe me out with my tax questions.

1) What exactly is the tax rate for foreigners (in my case, an F4 holder)? Are they any different from those of Koreans? I see the 3.3% figure being thrown around like it's nobody's business....where does this number come from? The NTS website says it's something like 17% flat rate, or a sliding scale after 30% of your income is deducted. That doesn't seem like what I've paid. What I got deducted was rather more like the 3.3%
AhhH! I'm confused


2) Do we file tax returns? Are we entitled to any refunds or have to pay anything after the "year-end settlement"?


3) Do the tax-saving measures for regular Koreans (e.g. tax deductions from credit cards, cash receipts, monthly rent) apply to us as well? I've always declined cash receipts because I didn't really know what tha heck it was about.


Those are some questions for starters. Any help would be appreciated.

[andrewchon]

1. 's far as I know for F4s, first two years are 0%. Next two 3%-ish.
2. Don't know about Canadien thing
3. Get the card for getting the sales-tax back.

[CA-NA-DA-ABC]

[Big Mac]

Tax is determined on a sliding scale depending on your salary. Go to this website and input your monthly salary to see what you should pay each month. It's usually less than 2 per cent.

http://nts.go.kr/eng/help/help_52.asp?top_code=H001&sub_code=HS05&ssub_code=HSE2

The above rate applies if you are registered as an EMPLOYEE, which you should be.

The 3.3 per cent number is a flat rate that is applied to INDEPENDENT CONTRACT WORKERS. Many employers will register you like this to avoid paying other things like pension, etc. or just because they don't know any better.

You do not file a tax return. Your employer is responsible for compiling all the information in the January following the tax year and is supposed to submit it to the tax office. In February, your employer is obligated by law to give you a statement (in Korean) of the tax you paid for the year. That statement will show whether you have a refund or a balance owing.

If you have a refund, the money is given to your employer, who is supposed to turn the money over to you. This sometimes doesn't happen though. This is why it's important to ask for that tax receipt in February so that you don't get screwed over!