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Korean Job Discussion Forums
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Scottie Alan
Joined: 26 Jan 2010
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 Posted: Fri Sep 17, 2010 7:08 pm Post subject: CURRENT tax rates |
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| I just noticed my recently-became past employer was charging me 5% tax (which included something called a residence tax management cost), while every other teacher I know, including the hagwon I am now working for, takes 3.3%. Does anyone else know of, or have, 5% taken out? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Fri Sep 17, 2010 9:40 pm Post subject: Re: CURRENT tax rates |
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| Scottie Alan wrote: |
| I just noticed my recently-became past employer was charging me 5% tax (which included something called a residence tax management cost), while every other teacher I know, including the hagwon I am now working for, takes 3.3%. Does anyone else know of, or have, 5% taken out? |
You were screwed (but the residence tax is legit).
Tax for an employee (on a salary of 2.0-2.3 million) is in the range of 1.6-1.8%.
Tax for a sub-contractor (meaning you are also getting screwed out of medical and pension) is 3.3%.
Residence tax is 10% of your income tax.
http://www.nts.go.kr/
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Scottie Alan
Joined: 26 Jan 2010
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| Posted: Tue Sep 21, 2010 8:46 pm Post subject: |
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| Well, I checked the NTS site, but it's kind of Greek to me, considering the different types of employees and taxes. I make 2.5 million and did receive medical and pension. I was just wondering why my tax rate is 5.0% compared to 3.3 on my friends' contracts. Is it really a 1.7% jump from 2.3 to 2.5 mill? I assume I lose the pension or would I get the total from both jobs back when I leave for good? |
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denverdeath
Joined: 21 May 2005
Location: Boo-sahn
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| Posted: Wed Sep 22, 2010 12:44 am Post subject: |
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| Scottie Alan wrote: |
| Well, I checked the NTS site, but it's kind of Greek to me, considering the different types of employees and taxes. I make 2.5 million and did receive medical and pension. I was just wondering why my tax rate is 5.0% compared to 3.3 on my friends' contracts. Is it really a 1.7% jump from 2.3 to 2.5 mill? I assume I lose the pension or would I get the total from both jobs back when I leave for good? |
http://www.nts.go.kr/eng/help/help_56.asp?top_code=H001&sub_code=HS05&ssub_code=HSE4#none
2,000,000 would mean approx 24,790 or a rate of 1.24% for withholding tax(ie. income plus resident taxes)
2,500,000 would be approx 54,940 or 2.20% for withholding tax.
A lot of places withhold more, and you get a refund, same as other countries. If you don't get a refund when you're being taxed 5% on your salary plus being deducted the regular percentages for health and pension, yes, as ttompatz said, you are being ripped off.
You don't lose what you pay into pension if you are from one of the countries whose citizens get a lump-sum refund when they leave korea "for good". As long as you and your boss are contributing the appropriate amounts for, I assume by "both jobs", you mean 24 months, you should be good.
http://www.nps.or.kr/jsppage/english/main.jsp
If you're one of those "independent contractors", you don't pay into pension or health, and you are usually taxed a flat 3.3%. |
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