Korean Job Discussion Forums

Gentle Giant · Joined: 16 Jan 2003

How much tax to teachers have to pay? Does it change with the amount you make? I'm being offered the "standard" 2.0 won, how much of that will I lose in Korean taxes? Thanx Cool

Zyzyfer · Posted: Wed Mar 12, 2003 6:00 pm Post subject:

Since no answers are abound, it's somewhere between 3-5%. Different people will tell you different things, but the bottom line is that it's far cheaper than American or Canadian income taxes.

Confused Canadian · Joined: 21 Jan 2003

Check out this link. It's part of the Korean Taxation Web site. Enter your salary and it will tell you exactly how much tax you should pay according to Korean law.

However, you have to enter just the first 4 digits of your salary. For example, if your salary is 2,000,000 won, just enter 2000.

The second box (which has a 1 in it by default) is for the number of people in your family that you are supporting (in Korea).

The standard tax for 2,000,000 won is : 40,670
according to this web site.

Korean Tax Calculation web page:

http://www.nts.go.kr/menu/index.asp?sub=menu5&svc=5_6&sub_menu=menu1&svc_id=743

Harvard Material · Joined: 25 Feb 2003 Location: Seoul

Yeah, yeah...what is it? 3%? 3.3% 5%? 8.9%??? How can one person pay 3.3% and a school down the street charge 5.4%? I am paying 108,000 per month on 2,000,000. I have received so many mixed up comments about different places charge different amonuts. This is tax! How can it possibly change between you and me? I have went to the taxation link provided, and it should be around 40,000 a month. That was the total it spit out, but I get the same old same old "Well you might be paying 5.4%, but I pay 3%." It doesn't make a bit of sense. What is the tax rate? And, more importantly, how do I find out how much my employer has paid so I can get it back (if there is a financial scam happening)? I paid less tax making 2.2 a month at my previous institute, and am being told it's O.K.. How do I report it, or get to the bottom of it? I don't want to accuse the director until I am certain, and I would rather taxation dealt with the director than me. What can I do except get a refund, possibly? Can the hakwon (I hope), get a fine, or an audit performed? The institute is also deducting tax from a teacher who has been promised for a month and a half to go to Japan for the visa, but it hasn't happened yet. They are deducting around 100,000 a month of that teacher. Working illegally and still paying tax?? I guess that's O.K. too...

Zyzyfer · Posted: Wed Mar 12, 2003 7:25 pm Post subject:

No, it's not okay. But don't accuse your director of anything. Instead, state to him/her that it definitely isn't OK, and that you feel the tax is too high. Direct them to the website. If they get huffed and puffed over it, then you know something's up.

What to do after that, I wouldn't know. Go to the EFL Law website?

Harvard Material · Joined: 25 Feb 2003 Location: Seoul

Thanks Zyzyfer...good advice. I certainly wouldn't accuse anybody of something they aren't guilty of. I have to be certain before I open my mouth and point a finger. I don't want to make a fool of myself. Showing the owner the website I went to is a good idea. That, I didn't consider. Thanks for the input. I am meeting a lawyer this weekend - concerning a different location with a multitude of illegal practices. I'll get the legal low down about taxation practices during the consultation, and I'll post what information I do find out on Monday for everyone's benefit...Peace.

JackSarang · Joined: 28 Jan 2003

The amount coming off your paycheque can vary depending on what your Director is doing.

If your Boss is being COMPLETELY legal, then the Total off all deductions from your paycheque should be 9.5%.

This includes: 1.7% for Health Insurance.
3.3% for Korean Income Tax.
4.5% for the National Pension Scheme.

Some Directors don't deduct the Pension, because they have to match your contributions. So this is EXTRA money they are paying out for you. (because you get pension money back if you are certain nationality at the end of your stay, this includes the money your employer contributed) The people who are only getting deducted 5% or so aren't paying pension. If you aren't paying into the pension, ask for it, because if your Director gets audited you BOTH are screwed because the Government will force you to make backpayments into for every month you've legally worked in the country.

If all your paying is tax, then it should be 3.3%. Thats the law. Period. If more is being deducted your Director my be taking things off for things like "Security" or other crap. But you need to factor in health insurance and pension.

Confused Canadian · Joined: 21 Jan 2003

I agree that Health Insurance and Pension should be considered regarding total deductions, but as I pointed out earlier, you need to check the tax website to find out how much tax you should be paying. It is not a flat 3.3 %. According to JackSarang, you should be paying 66,000 won on 2,000,000. That is not true. You should be paying 40,670. Not to mention that the tax rate increases the more you make. When you earn overtime, your tax increases significantly. If you were to make 3,000,000 due to overtime, then you would be paying 175,080 won. Anyone can see that it is not a simple flat tax rate.

You should also be aware that some areas (perhaps all, I don't know for sure), also charge a "Municipal / Regional" Tax, which is 10% of the tax you pay. If this is the case, you would be paying an additional 4,067 on 2,000,000, for a total of 44,737.

Having said all that, it is not unusual for companies to have their "own tax system", which can vary from the Taxation website. However, if you file a tax return at the end of the year, you should get most of you tax money back.

Not intending to start a flame war, just trying to set the record straight.