|
Korean Job Discussion Forums
"The Internet's Meeting Place for ESL/EFL Teachers from Around the World!"
|
| View previous topic :: View next topic |
| Author |
Message |
catchshime
Joined: 25 Jun 2009
Location: "I am not born for one corner; the whole world is my native land."
|
 Posted: Wed Sep 02, 2009 1:30 am Post subject: CDI (Chungdahm) taxes for hourly workers aka "contracto |
 |
|
If there are any seasoned Chungdahm veterans/former accountants out there, this question is for you. There have been a few posts on the forum talking about taxes and Chungdahm, but none have answered my questions completely.
I will be an "hourly contractor" at one of the main CDI branches in November. I will have an F-4 visa and have heard that the flat tax-rate for such "contractors" is 3.3%.
However, I've also read that one can file for Korean tax exemption either before/while in Korea. Is this just for teachers in public schools? Remember, I am a private contractor.
Is it possible to apply for tax exemption in my case even though I have "contractor" status with an F-4 visa? I have also read here that Americans essentially pay nil when they file abroad if their income is under $80,000 - is this true?
What I'm saying is... if I apply for exemption in Korea, and file abroad making less than $80,000, this is essentially tax-free income. If anyone who has worked for CDI or has done the above could comment, that would be great.
Or, am I just stuck with the 3.3% flat-rate as an hourly contractor?
Thanks everybody. |
|
| Back to top |
|
 |
t1m1ty
Joined: 24 May 2009
Location: Bundang
|
| Posted: Wed Sep 02, 2009 1:49 am Post subject: Re: CDI (Chungdahm) taxes for hourly workers aka "contr |
|
|
| catchshime wrote: |
If there are any seasoned Chungdahm veterans/former accountants out there, this question is for you. There have been a few posts on the forum talking about taxes and Chungdahm, but none have answered my questions completely.
I will be an "hourly contractor" at one of the main CDI branches in November. I will have an F-4 visa and have heard that the flat tax-rate for such "contractors" is 3.3%.
However, I've also read that one can file for Korean tax exemption either before/while in Korea. Is this just for teachers in public schools? Remember, I am a private contractor.
Is it possible to apply for tax exemption in my case even though I have "contractor" status with an F-4 visa? I have also read here that Americans essentially pay nil when they file abroad if their income is under $80,000 - is this true?
What I'm saying is... if I apply for exemption in Korea, and file abroad making less than $80,000, this is essentially tax-free income. If anyone who has worked for CDI or has done the above could comment, that would be great.
Or, am I just stuck with the 3.3% flat-rate as an hourly contractor?
Thanks everybody. |
Sorry, I don't know anything about your topic really. But, I did want to say I'll be heading to CDI in January under hourly contract as well. Hope to hear some replies soon on this thread! |
|
| Back to top |
|
|
tired of LA
Joined: 06 Nov 2006
Location: Seoul
|
| Posted: Wed Sep 02, 2009 4:35 am Post subject: Re: CDI (Chungdahm) taxes for hourly workers aka "contr |
|
|
| catchshime wrote: |
If there are any seasoned Chungdahm veterans/former accountants out there, this question is for you. There have been a few posts on the forum talking about taxes and Chungdahm, but none have answered my questions completely.
I will be an "hourly contractor" at one of the main CDI branches in November. I will have an F-4 visa and have heard that the flat tax-rate for such "contractors" is 3.3%.
However, I've also read that one can file for Korean tax exemption either before/while in Korea. Is this just for teachers in public schools? Remember, I am a private contractor.
Is it possible to apply for tax exemption in my case even though I have "contractor" status with an F-4 visa? I have also read here that Americans essentially pay nil when they file abroad if their income is under $80,000 - is this true?
What I'm saying is... if I apply for exemption in Korea, and file abroad making less than $80,000, this is essentially tax-free income. If anyone who has worked for CDI or has done the above could comment, that would be great.
Or, am I just stuck with the 3.3% flat-rate as an hourly contractor?
Thanks everybody. |
The tax exemption is only for people working at public schools or universities. To get it, you would have to apply for a certificate of residency from the IRS before you come to Korea. But since you will be working at a hagwon, its a moot point. |
|
| Back to top |
|
|
catchshime
Joined: 25 Jun 2009
Location: "I am not born for one corner; the whole world is my native land."
|
| Posted: Wed Sep 02, 2009 5:41 am Post subject: Re: CDI (Chungdahm) taxes for hourly workers aka "contr |
|
|
| tired of LA wrote: |
| catchshime wrote: |
If there are any seasoned Chungdahm veterans/former accountants out there, this question is for you. There have been a few posts on the forum talking about taxes and Chungdahm, but none have answered my questions completely.
I will be an "hourly contractor" at one of the main CDI branches in November. I will have an F-4 visa and have heard that the flat tax-rate for such "contractors" is 3.3%.
However, I've also read that one can file for Korean tax exemption either before/while in Korea. Is this just for teachers in public schools? Remember, I am a private contractor.
Is it possible to apply for tax exemption in my case even though I have "contractor" status with an F-4 visa? I have also read here that Americans essentially pay nil when they file abroad if their income is under $80,000 - is this true?
What I'm saying is... if I apply for exemption in Korea, and file abroad making less than $80,000, this is essentially tax-free income. If anyone who has worked for CDI or has done the above could comment, that would be great.
Or, am I just stuck with the 3.3% flat-rate as an hourly contractor?
Thanks everybody. |
The tax exemption is only for people working at public schools or universities. To get it, you would have to apply for a certificate of residency from the IRS before you come to Korea. But since you will be working at a hagwon, its a moot point. |
So what you're basically saying is I'll be paying the 3.3% rate no matter what? Is this the rate that people are taxed normally under hagwons? |
|
| Back to top |
|
|
ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
|
| Posted: Wed Sep 02, 2009 7:22 am Post subject: |
|
|
For most of us, it is better to work as an employee. Income taxes in Korea are progressive, so there is no tax rate that applies to all. To find the appropriate tax withholding, you need to use the National Tax Service website.
Try this link:
http://www.nts.go.kr/eng/
click on: Automatic Calculation Service
There is a year end tax calculator and if you need to check your monthly withholding look for: Check your monthly withholding tax
Or try this direct link:
(Actually, the monthly withholding calculator found on the NTS site seems to be down right now. I don't know if this is temporary or when it happened or when or if the calculator will be working again.)
http://www.nts.go.kr/eng/help/help_52.asp?top_code=H001&sub_code=HS05&ssub_code=HSE2 |
|
| Back to top |
|
|
huck
Joined: 19 Jan 2003
|
| Posted: Sat Dec 12, 2009 9:41 pm Post subject: |
|
|
| Basically, they take 3.3%...When tax time comes around, you go to a Korean accountant, pay him 250,000won or so, and he knocks down the tax you owed from 3million or so to 80,000won. |
|
| Back to top |
|
|
|
|
You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot vote in polls in this forum
|
|
FAQ
Search
Memberlist
Usergroups
Register
Profile
Log in to check your private messages
Log in
