Korean Job Discussion Forums

[horton1]

I received a letter from the tax office, it was delivered to my door and I had to sign for it. It was all in Korean and had some very large amounts on it. I was a bit worried, as I have never received anything like this before. I phoned the tax office, and was told I owed 2.3 million won in taxes for 2009.

In the end, I was told I should pay it, but because I'm a foreign worker, there is nothing they can do to me if I don't pay it. The guy at the tax office pretty much told me to forget about paying it.

Has this happened to anyone else? I know for sure my school pays taxes for me, as I have been working there for 4 years. I have filed my taxes before in Korea, just not last year. I wonder if this is because of the new tax changes I have heard about? Anyway, it doesn't really matter because I don't have to pay it.... strange.

[Jake_Kim]

What's the title of the tax you're not going to pay?

[horton1]

I had a Korean phone the tax office to double check. The explanation was that I am taxed at a rate of 3.3% for the first 25 million won of my yearly income. After I earn beyond that amount the tax rate goes up to a much higher rate. Because of that, I was taxed an additional 2.3 million on my income.

[big_fella1]

If this is legitimate, you need to follow this up.. You are not taxed 3.3% on your first 25 million and then some higher amount on extra earnings. 3.3 is a withholding rate to help you fulfill your tax obligations. You can check at http://nts.go.kr/eng/help/help_53.asp?top_code=H001&sub_code=HS05&ssub_code=HSE3

As far as the statement that you are a foreigner, they can't do anything, if you want to stay in Korea they can prevent you from receiving another visa.

Spend a couple of hundred bucks and see an accountant.

[horton1]

Thanks for the advice. After looking into it more, I am going to see an accountant. That amount was for 2009, so I imagine I will owe somewhere close to the same for 2010, if not more.

I really don't want to have any visa problems in the future. I will be applying for my F2 visa soon, so I don't want this issue to pop up again. If I have to pay, then I will. I don't want any tax problems to haunt my wife after we are married.

I'm just curious if many people have received such large tax bills before? Or is this just because my my income has increased over the last several years?

[wylies99]