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nate1983
Joined: 30 Mar 2008
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 Posted: Mon Sep 19, 2011 11:51 am Post subject: Income tax etc. for US citizen in foreign company |
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I taught in Korea for almost two years (at a public institution) and all my tax stuff was handled by the administration, and I was exempt from US income tax under the Foreign Earned Income Exclusion so basically I didn't have to think too hard about it. Now I'm working for a British company and my boss is trying to get me transferred to Korea at the beginning of next year, but since not many foreigners move there and HR is really slow (partly because the union is on strike now hah) we're trying to figure out how I'll need to be paying tax and pension contributions. If anyone has any experience with this it'd be very much appreciated.
From what I can garner, I'd have to start paying Korean income tax and pension contribution from the time I enter the country on a work visa - I believe my contract would stay in the states though, at least for the first several months. So I don't see how our office in NYC is going to contribute into the Korean pension plan...or would I just keep paying US Social Security? And I guess income tax is the same story...but if I'll have to pay all the Korean stuff, how will my employer stop my automatic deductions into US SS? And can I elect $0 tax withholding since I'm out of the country? This is pretty confusing so it'd be great to know what other people did, since on top of visa etc. this could be a big administrative hassle if we don't know how to explain how we're planning to approach it. Thanks. |
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methdxman
Joined: 14 Sep 2010
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| Posted: Tue Sep 20, 2011 12:05 am Post subject: Re: Income tax etc. for US citizen in foreign company |
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| nate1983 wrote: |
I taught in Korea for almost two years (at a public institution) and all my tax stuff was handled by the administration, and I was exempt from US income tax under the Foreign Earned Income Exclusion so basically I didn't have to think too hard about it. Now I'm working for a British company and my boss is trying to get me transferred to Korea at the beginning of next year, but since not many foreigners move there and HR is really slow (partly because the union is on strike now hah) we're trying to figure out how I'll need to be paying tax and pension contributions. If anyone has any experience with this it'd be very much appreciated.
From what I can garner, I'd have to start paying Korean income tax and pension contribution from the time I enter the country on a work visa - I believe my contract would stay in the states though, at least for the first several months. So I don't see how our office in NYC is going to contribute into the Korean pension plan...or would I just keep paying US Social Security? And I guess income tax is the same story...but if I'll have to pay all the Korean stuff, how will my employer stop my automatic deductions into US SS? And can I elect $0 tax withholding since I'm out of the country? This is pretty confusing so it'd be great to know what other people did, since on top of visa etc. this could be a big administrative hassle if we don't know how to explain how we're planning to approach it. Thanks. |
Get your company to hire the services of an accounting firm e.g. Deloitte. Too messy to do on your own and the information out there isn't all that clear. |
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