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Korean Job Discussion Forums
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teacherman1234
Joined: 19 Apr 2007
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 Posted: Wed Sep 01, 2010 4:20 pm Post subject: August tax increase for PS to 200,000 won a month? |
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Hey,
just wanted to check if its a national thing or just in Gangnam, but my school has put our tax up to 200,000 won a month. Anyone else had a tax hike? I get 2.5m so its about 8% of my wage i think |
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oldfatfarang
Joined: 19 May 2005
Location: On the road to somewhere.
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| Posted: Wed Sep 01, 2010 4:41 pm Post subject: |
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We need a breakdown. Please supply the kind of tax and the exact amount for each type.
Most GET's don't pay income tax for the first 2 years. We only pay pension, old age pension, and medical.
Please advise. |
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yoja
Joined: 30 May 2008
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| Posted: Wed Sep 01, 2010 5:54 pm Post subject: |
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You should have received an email from the coordinator about this a few months ago (maybe back in February??), although it sounds like your school is a little slow and just getting around to implementing this now.
Teachers who work for the Gangnam Office of Education receive a housing stipend each month. In the past, this amount was not used to calculate tax. However, your housing stipend is now considered taxable income and so the total amount of tax you will pay will increase.
Also, in the past there was a provision that foreigners only paid taxes on 30% of their total income. I'm certainly no expert on this, or how it worked exactly, but I do know that this law has been changed and starting this year, foreigners will pay tax based on 100% of their income. So yes, you are definitely going to see a healthy increase in the tax deducted from your monthly salary.
Some of us have been paying more in taxes for the past several months. It sounds like you're lucky if it hasn't happened to you until now. |
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working title
Joined: 20 Apr 2010
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| Posted: Wed Sep 01, 2010 9:16 pm Post subject: |
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I've been working in a public school now for two years. I know that I'll be eligible to be taxed for my third contract (third year). Two questions
A) Are after school classes also taxable?
B) How much are we taxed? 100% of our income, what percentage? 20%? |
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teacherman1234
Joined: 19 Apr 2007
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| Posted: Wed Sep 01, 2010 11:30 pm Post subject: |
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ok,
so the 200,000 is income tax, and although im entering my third year as well as the other poster and have to pay income tax now, 200,000 seems high, i also pay 68,000 medical, 78,000 pension, and 20,000 local tax so 366,000 deductions in all. My wage and housing come to 3.4m, i guess 11% deductions in total is less than back home but still seems alot, doesnt it? |
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TheUrbanMyth
Joined: 28 Jan 2003
Location: Retired
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| Posted: Thu Sep 02, 2010 3:18 pm Post subject: |
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| yoja wrote: |
Y
Also, in the past there was a provision that foreigners only paid taxes on 30% of their total income. I'm certainly no expert on this, or how it worked exactly, but I do know that this law has been changed and starting this year, foreigners will pay tax based on 100% of their income. So yes, you are definitely going to see a healthy increase in the tax deducted from your monthly salary.
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That provision was 70% not 30%. A 30% increase when we were only paying about 2% or thereabouts is hardly a "healthy increase". |
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nukeday
Joined: 13 May 2010
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| Posted: Thu Sep 02, 2010 4:02 pm Post subject: |
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| teacherman1234 wrote: |
ok,
so the 200,000 is income tax, and although im entering my third year as well as the other poster and have to pay income tax now, 200,000 seems high, i also pay 68,000 medical, 78,000 pension, and 20,000 local tax so 366,000 deductions in all. My wage and housing come to 3.4m, i guess 11% deductions in total is less than back home but still seems alot, doesnt it? |
your housing allowance is probably putting you into a higher tax bracket (they have them here too). your net is still a lot more than us SMOE suckers, though, so chin up old boy!
Besides, remember that pension isn't really much of a "deduction" considering you'll get double what you pay into it back. |
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tired of LA
Joined: 06 Nov 2006
Location: Seoul
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| Posted: Thu Sep 02, 2010 4:48 pm Post subject: |
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| teacherman1234 wrote: |
ok,
so the 200,000 is income tax, and although im entering my third year as well as the other poster and have to pay income tax now, 200,000 seems high, i also pay 68,000 medical, 78,000 pension, and 20,000 local tax so 366,000 deductions in all. My wage and housing come to 3.4m, i guess 11% deductions in total is less than back home but still seems alot, doesnt it? |
I would talk to your school about your pension deduction. Looks like they are basing it on 70% of your salary, which was something they were allowed to do when foreigners were only taxed on 70% of their income. But now that we're paying tax on 100%, your pension should be based on 100% of you income. |
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camaroclow
Joined: 10 Apr 2008
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| Posted: Thu Sep 02, 2010 5:59 pm Post subject: |
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| If the housing stipend is being taxed, does it make sense that it should be included calculating our pension contributions? |
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