Korean Job Discussion Forums

alistaircandlin · Joined: 24 Sep 2004 Location: Seoul

I'll be checking this out with my school and the tax office this week but I thought I'd ask for advice here too.

I worked as a teacher in Korea from 2004 until Sep 2006. I then returned to England for four years. I returned to Seoul this August and started working in September. Do I have to pay tax or am I still eligible for the two year tax exemption?

Regards,

Alistair

cincynate · Joined: 07 Jul 2009 Location: Jeju-do, South Korea

You can only get it once. I would suggest applying for it, but your Hagwon or Epik will get a friendly little letter stating that you have exceeded the exemption period and will have to pay any taxes you would have paid during the time between when you apply and when the letter comes.

bish · Joined: 09 Jun 2007

while we are on tax: what is the rate for foreigners who have been here more than 2 years?

I heard it has gone up this year. Do foreigners still get deductions?

cincynate · Joined: 07 Jul 2009 Location: Jeju-do, South Korea

We lost a major deduction with the 2010 tax year. I'm not sure what it was. However, even without the deduction the tax rate is very low in SK. Somewhere 3~5%.. Nothing even close to what the western countries pay.

Dartmouth07 · Joined: 20 Sep 2010 Location: KR

I have asked several people about how taxes work for foreigners in Korea and have gotten mixed answers so maybe I can get some clarity here.

I'm from the US and have been working at a hagwon in Korea for 2 months now... am I eligible for the tax exemption and how do I apply for it if I am? Do I get a tax refund at the end of my contract? Thanks

runthegauntlet · Joined: 02 Dec 2007 Location: the southlands.

cincynate · Joined: 07 Jul 2009 Location: Jeju-do, South Korea

No, both Public School teachers and Hagwons are eligible for the tax exemption. The problem with Hagwons is most directors don't know about it, so they don't tell their native teachers. Everyone who works at a hagwon should get the tax exemption.

runthegauntlet · Joined: 02 Dec 2007 Location: the southlands.

alistaircandlin · Joined: 24 Sep 2004 Location: Seoul

Yeah you are exempt either at a Hagwon or at a public school. I have a link to the tax office somewhere, which I'll find and post later.

Actually in my case the tax is low anyway: most of the money deducted goes on medical and pension. I got a shock this month but when I checked it out I'd been charged double for everything - because no deductions were made in September. I was shocked to find 450,000 missing from my paycheck, but next month It'll only be half of that.

Dartmouth07 · Joined: 20 Sep 2010 Location: KR

Thanks for the responses. I'll check out that link once you post it... so do I get a refund at the end of my contract for the taxes i'm paying or do I need to talk to my director and tell him I should be exempt from taxes?

Vetter · Joined: 12 Oct 2010

If you are tax exempt from S. Korea, you then must pay tax in the US. S.Korea is only 3 - 5 %. Most people in the US are 25-30%. Do the math. I rather pay in S. Korea. There is no double dipping. You only pay in one or the other country. I just got off the phone with the IRS. This is how I know.