Korean Job Discussion Forums

[canamcouple]

Does anyone know if there is a penalty for not filing taxes (individual income tax return) in Korea? I work for a hogwan, therefore I am not tax exempt. In some countries, they check if you've filed your taxes at the airport before you leave after finishing your contract, and if you haven't, you will have to pay a fine. Has anyone heard of this happening in Korea? Also, has anyone heard of any penalties imposed for not paying into the National Pension Plan?

Note: I have read both the Tax Guide for Foreigners on the Korean National Tax website, and the guide for Korea's Pension Plan. I'm fairly certain that my hogwan has not been complying with all of the guidelines and I am now close to the end of my contract. At this point, however, I'm only interested in whether or not there are any penalties I need to worry about.

Any comments on this would be greatly appreciated!!!

[OculisOrbis]

You dont have to worry about getting stopped at the airport.

You should be worrying about getting your butt to the pension office and reporting your employer. Submit your share of the 9% contribution and they will go after your employer for their share. You can go home with a 4.5% bonus on top of your 13th month bonus - would be an extra 1.2 million on a 2.1 million salary.

[canamcouple]

Thanks - I definitely agree that's a step that should be taken.

I've discovered I'm in what seems to be a 'classic' situation. I'm being taxed 3.3% a month off of my total salary ('independent contractor' instead of 'employee'...no 30% exemption...no receipt of income tax withholding from my employer, nor any refund). I have no idea what difference this will make when I file for my final composite income tax return (the guy on the tax office helpline was extremely vague).

Do you have any idea if I'm even required to file my taxes? I know I have to pay Korean taxes out of my paycheck, but I read in the guide that "when a taxpayer has wage and salary income only, he/she is not subject to final composite income tax return (self-assessment)."

Also - while I'm on the subject - does anyone know if on the 'final composite income tax return' we are taxed 8% or 17%? The two scenarios in the guide have one of each, as well as Article 18-2...but there is no explanation as to what the decisive factor is.

[OculisOrbis]

Just leave. Stop worrying about your taxes here. No one will stop you. It's not worth the headaches of dealing with everything you've described. It's going to be a battle for everything for the rest of your time here and you'll end up losing.

Regarding pension, if you accept that you are an independent contractor, you are responsible for the entire 9% contribution. I assume that also means you were never enrolled in the health insurance program, as well.

NEVER NEVER NEVER SIGN A CONTRACT THAT STATES YOU ARE AN INDEPENDENT CONTRACTOR. It's the first sign your employer will screw you any chance they get.