Korean Job Discussion Forums

[Seoulman69]

I got a letter from my bank (KEB). It shows that i paid 560,000won on my debit card last year. I took it to my local branch and they advised me to take it to my employer.

Does anyone have any experience of doing this? Will I get money back? Are foreigners eligible?

Thanks.

[daeguowl]

To be eligible for a tax refund your spending on all debit/credit cards has to exceed a certain threshold. If you just have the one card with 560k of spending then I don't think you're likely to hit the threshold.

Your employer should assist with your tax return but you will need to collect info regarding medical expenses during the year etc. I'm sure they'll let you know what you need. FYI, you should also register with the tax office for their cash receipt system so that all your expenses paid in cash can also be included when preparing your tax return (from now onwards)

[morrisonhotel]

[suwonsi]

I am not sure but I think the rule is as follows:

If u spend beyong 25% of ur annual salary using credit card, then u can request for tax refund on the excess over the 25% u have spent. Also this excess is bounded by 3million won. However, this excess amound is multiplied by 1.2 for credit card and 1.25 for debit card.

So, if u have spend 30% of ur salary using Cards, u can request 5% as non-taxable income which may lead to a small refund.

But 560,000 Won is way to less to be more than 25% of ur salary. I doubt u can get any refund.

[Seoulman69]

All this tax return stuff is new to me so I'm a bit lost.
My employer said because the company is run by one person I should wait until May to try to claim any money back. Are there any websites with information about this?

[suwonsi]

Yes, this give all information u need even about Year End Tax Settlement

And ya, its in English

http://www.nts.go.kr/eng/

http://www.nts.go.kr/eng/korean/korean_04.asp?top_code=K001&sub_code=KS04&ssub_code=KSC4