Korean Job Discussion Forums

[Chet Wautlands]

I finished working at a public school on January 1st, 2012. I've since returned to Canada and am flying back to Korea in 10 days to start work at a new job.

Via Kakao talk I've been told that I have to pay taxes. I expect this... however, the amount seems ridiculous... here are the messages I received in case that helps:

연말정산 세금 나왔어요 1,431,520 원

급여에 항공료 오버차지등이 포함되서 이번에세금이 많이나왔데요

어째 근데 이번에 월급토탈이 많더라구요

Anyone understand why I'm being asked to pay more than three times what I paid last year? Pretty frustrated right now.

[ttompatz]

3 different tax threads in the same day.
Did you actually take the time to calculate what your taxes should have been or just left it to the tax ghods?

Fill in the tax form
http://www.nts.go.kr/eng/help/help_53.asp?top_code=H001&sub_code=HS05&ssub_code=HSE3 (annual salary)

DEPENDING on your income the numbers can vary but a nominal tax rate of 15% is NOT a 15% flat tax. Taxes are progressive and it is possible that your employer was under taxing you.

Compare that to your taxes that were withheld. IF your income was high enough there very well may be a tax balance due.
At 2.4 million the rate goes up to 1.92% (46k won)
At 2.6 million the rate goes up to 2.50% (65k won)
At 2.8 million the rate goes up to 3.25% (91k won)
At 3.0 million the rate goes up to 3.96% (119k won)
At 3.5 million the rate goes up to 6.48% (227k won) per month

Since the 30% of earned income deduction was eliminated last year a LOT of people moved into higher tax brackets and were then underpaying during the year leaving a largish tax bill due now.

.

[braindrops]

So if I'm calculating correctly, the exact point at which it would be better to go with the 15% flat rate would be just over 9 million a month. Does that sound about right?

[braindrops]

While we're on the subject, what exactly goes toward the tax as taxable income, anyway? Does housing allowance, for example, count toward income, or is it considered a gift of some sort? How is severance taken into account (as a bonus)? Etc. etc...

[Chet Wautlands]

[thegadfly]