Korean Job Discussion Forums

[joesp]

I am a freelance proofreader and translator. Many of you have been here too long, like me, maybe somebody knows some of this stuff.

I got the F-2 last November. Does anybody know:

-- all freelancers pay 3% tax, right, we file a form at the 구청 ... but what if we have a company registered? my 사업자등록증 (business registration certificate) says that I am 명세사업자 (a tax-free company). What does this mean?

-- do I have to get a 급여 명세서, a paycheck/deduction stub, from all the agencies that "make deductions already" ... meaning, taxes ... how do I go about reconciling my paying taxes above with this?

-- My main gig used to support my visa, and my insurance. I just told them that I have this registered company, now they say that I need my own insurance (no more 직장 보험, worker's insurance) and have to take care of my own taxes.

-- when do I have to do all this tax stuff anyways? Do I go to the 세무서 (tax office) because I have a business registered or do I go to the 구청 ?

I have no idea how to handle all of this stuff. The problem is that I don't have basic knowledge about Korean tax law. I should find a book on Tax 101 for your One-man Business ... I don't feel I have the rights to make a secretary explain how to do this to me, since I am just their freelancer.

but I don't think the answers should really be all that complicated.



Joe

[PRagic]

Welcome to business in Korea! Yup, you now have to buy your own insurance, it's mandatory, and it ain't cheap!

You also have to file your own taxes. Most of my freelance friends have a Korean CPA help them out with this. GET RECEIPTS for all work related expenses. There are deductions that you'll be able to take. Check with a tax professional. Also, when getting paid, make sure that they deduct the correct type/category of tax. It's a royal pain when tax time rolls around and you have to sort out different declarations.

Also, keep an invoice book/log. Every time you complete a project and get paid, write them out an invoice and keep the record, including their company name and point-of-contact name/phone number/e-mail. I highly doubt that you're a 'tax free' so you might want to check on that. One joy you're going to have is trying to keep track of who pays you and when and for what job (or who doesn't)!

Good luck to you.

[giraffe]

I'm a reelancer but I dont fit in the "freelancer" category for my taxes ... My income is 100% foreign income (coming from USA/UK ...) So my situation is a bit different than yours.. In many ways your situation is quite typical/ simple to deal with as long as you're well organized and keep all your paperwork

THERES ALOT of info on the National Tax website... if you take time to dig through it..

http://www.nts.go.kr

You can also read the tax book for 2010 ..im sure the rules are pretty much all the same or similar...

http://www.nts.go.kr/eng/data/Individual_Income_Tax_2010.pdf

Filling taxes should be done between May 1st-May 31st For the previous tax year. So your 2011 taxes should have been filled by may 31st... Not filling taxes does result in fines and or extra interest on whatever amount you owe. Up to 20% extra.... And 0.03% per day extra for unpaid taxes =p ( info taken from NTS website...)... I dont know how strict they are about this but I make sure you get your stuff together ASAP....

- No , Not all freelancers pay 3.3% taxes. It all depends on your income, What kind of freelance/job you have etc. ESL teachers and other language services probably fit into the 3.3% tax bracket But it might depend on your salary aswell.. IN my case the kind of work i do is not covered in the "freelancer" jobs.....

-I've no clue about forms and what not.. i dont work for domestic companies.


If the korean tax office doesnt want to help you with your taxes, Just find yourself a a korean Accountant and they can and will file your taxes and submit them for you and tell you what you need to do in terms of forms and what not. all you will have to do is give all your receipts/invoices/ bank statements, sign some documents and Pay a sum at the bank.

Anyways In my case , After visiting 4 different tax offices NO one knew what to do with me .. They've never encountered any other foreigners in my situation because my income is all international and they had no file on me. Most workers just told me NOT to do taxes. I went out and found myself an accountant instead. The Accountant cost me about 100k won and it took a day or 2 to finish my taxes. He did a great job because in the end I ended up paying something like 2% taxes on my whole salary.

-As for insurance. Cant you just get the national health insurance under your wife's name if she is working? That's how I'm getting it...
good luck..

[PRagic]

Nope, for insurance the OP has to get independent coverage. We found this out when my wife started her own company. She could no longer be covered under my national ins plan.