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Nolos
Joined: 23 Oct 2011
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 Posted: Tue Jul 30, 2013 3:28 am Post subject: Why Am I Getting Charged 4.4% Income Tax, Thought it was 3.3 |
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| What is the % deducted for income tax? I'm getting docked 4.4%. Should I raise an issue? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Jul 30, 2013 3:55 am Post subject: Re: Why Am I Getting Charged 4.4% Income Tax, Thought it was |
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| Nolos wrote: |
| What is the % deducted for income tax? I'm getting docked 4.4%. Should I raise an issue? |
Depends on your income and your status (employee or sub contractor).
Independent contractors typically pay 3.3% and then have to calculate expenses,l gross and net income at the end of the year (like any other business).
Employees in the 2.2 million KRW range should be paying about 1.7%.
Bigper money earners do pay more. With a monthly income of 3.5 million your rate would be about 4.5%.
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Nolos
Joined: 23 Oct 2011
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| Posted: Tue Jul 30, 2013 4:17 am Post subject: Re: Why Am I Getting Charged 4.4% Income Tax, Thought it was |
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| ttompatz wrote: |
| Nolos wrote: |
| What is the % deducted for income tax? I'm getting docked 4.4%. Should I raise an issue? |
Depends on your income and your status (employee or sub contractor).
Independent contractors typically pay 3.3% and then have to calculate expenses,l gross and net income at the end of the year (like any other business).
Employees in the 2.2 million KRW range should be paying about 1.7%.
Bigper money earners do pay more. With a monthly income of 3.5 million your rate would be about 4.5%.
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ttompatz:
I was getting docked 4.4% and paying around 90k in income taxes a month at an after school program for 3 years, and my salary was 2.2. They have some explaining to do.
Last edited by Nolos on Tue Jul 30, 2013 4:21 am; edited 1 time in total |
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Nolos
Joined: 23 Oct 2011
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| Posted: Tue Jul 30, 2013 4:20 am Post subject: |
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| And my Korean wife says she keeps reading that foreigners don't even have to pay tax for the first two years (except Canadians). Have you heard of anything like this before? |
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nicwr2002
Joined: 17 Aug 2011
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| Posted: Tue Jul 30, 2013 5:40 am Post subject: |
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| To add to this, make sure you register your bank account with the National Tax Service so that you can receive a tax refund every year. They will give you a number so that even when you use cash you can type that number into the thing that you usually sign when using a card. You have to type that number when using your card also. I paid 3.3% last year, it wasn't my bosses fault, and thought I would get a refund back, but because my bank account wasn't registered I ended up paying even more money. |
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ontheway
Joined: 24 Aug 2005
Location: Somewhere under the rainbow...
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| Posted: Tue Jul 30, 2013 1:12 pm Post subject: Re: Why Am I Getting Charged 4.4% Income Tax, Thought it was |
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| Nolos wrote: |
| ttompatz wrote: |
| Nolos wrote: |
| What is the % deducted for income tax? I'm getting docked 4.4%. Should I raise an issue? |
Depends on your income and your status (employee or sub contractor).
Independent contractors typically pay 3.3% and then have to calculate expenses,l gross and net income at the end of the year (like any other business).
Employees in the 2.2 million KRW range should be paying about 1.7%.
Bigper money earners do pay more. With a monthly income of 3.5 million your rate would be about 4.5%.
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I was getting docked 4.4% and paying around 90k in income taxes a month at an after school program for 3 years, and my salary was 2.2. They have some explaining to do. |
Are you an employee? Do you have National Health Ins and National Pension withheld from your pay? If so, your tax rate should be according to the withholding calculator:
http://www.nts.go.kr/eng/help/help_52.asp
If you are an Independent Contractor, your withholding should generally be 3.3%.
Either way 4.4% is too much. Time to visit the Tax Office.
Since you were in an after school program, were you by any chance involved in one of those bankbook scams where you set up a bank account in your name and money flows through it to your boss who has the account number and password to your account? ... or some variation of this scheme? |
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Nolos
Joined: 23 Oct 2011
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| Posted: Tue Jul 30, 2013 6:59 pm Post subject: Re: Why Am I Getting Charged 4.4% Income Tax, Thought it was |
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| ontheway wrote: |
| Nolos wrote: |
| ttompatz wrote: |
| Nolos wrote: |
| What is the % deducted for income tax? I'm getting docked 4.4%. Should I raise an issue? |
Depends on your income and your status (employee or sub contractor).
Independent contractors typically pay 3.3% and then have to calculate expenses,l gross and net income at the end of the year (like any other business).
Employees in the 2.2 million KRW range should be paying about 1.7%.
Bigper money earners do pay more. With a monthly income of 3.5 million your rate would be about 4.5%.
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Thankfully no, I was not a part of that banking scheme.
I was getting docked 4.4% and paying around 90k in income taxes a month at an after school program for 3 years, and my salary was 2.2. They have some explaining to do. |
Are you an employee? Do you have National Health Ins and National Pension withheld from your pay? If so, your tax rate should be according to the withholding calculator:
http://www.nts.go.kr/eng/help/help_52.asp
If you are an Independent Contractor, your withholding should generally be 3.3%.
Either way 4.4% is too much. Time to visit the Tax Office.
Since you were in an after school program, were you by any chance involved in one of those bankbook scams where you set up a bank account in your name and money flows through it to your boss who has the account number and password to your account? ... or some variation of this scheme? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Tue Jul 30, 2013 7:39 pm Post subject: |
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| Nolos wrote: |
| And my Korean wife says she keeps reading that foreigners don't even have to pay tax for the first two years (except Canadians). Have you heard of anything like this before? |
IF:
- you are on an E2,
- NOT Canadian and
- employed by the school (not by an agency who subcontracts to the school)
then you can get a tax holiday for the first 2 years in Korea.
If you have been here more than 2 years then you don't get the tax break, even if you do change to a public school (as a direct employee).
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Adam Carolla
Joined: 26 Feb 2010
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| Posted: Tue Jul 30, 2013 8:30 pm Post subject: |
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| ttompatz wrote: |
| Nolos wrote: |
| And my Korean wife says she keeps reading that foreigners don't even have to pay tax for the first two years (except Canadians). Have you heard of anything like this before? |
IF:
- you are on an E2,
- NOT Canadian and
- employed by the school (not by an agency who subcontracts to the school)
then you can get a tax holiday for the first 2 years in Korea.
If you have been here more than 2 years then you don't get the tax break, even if you do change to a public school (as a direct employee).
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Don't listen to this guy, he's full of crap.
j/k He knows if you are going to knock over the vase and whether or not you are the One. |
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Nolos
Joined: 23 Oct 2011
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| Posted: Wed Jul 31, 2013 3:45 am Post subject: |
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| ttompatz wrote: |
| Nolos wrote: |
| And my Korean wife says she keeps reading that foreigners don't even have to pay tax for the first two years (except Canadians). Have you heard of anything like this before? |
IF:
- you are on an E2,
- NOT Canadian and
- employed by the school (not by an agency who subcontracts to the school)
then you can get a tax holiday for the first 2 years in Korea.
If you have been here more than 2 years then you don't get the tax break, even if you do change to a public school (as a direct employee).
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Thank you for the clarification. |
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FriendlyDaegu
Joined: 26 Aug 2012
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| Posted: Thu Aug 01, 2013 3:06 am Post subject: Re: Why Am I Getting Charged 4.4% Income Tax, Thought it was |
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| Nolos wrote: |
I was getting docked 4.4% and paying around 90k in income taxes a month at an after school program for 3 years, and my salary was 2.2. They have some explaining to do. |
Your numbers don't add up. If you were paying 90k on 2.2m, how did you come up with 4.4? You mean total deductions? |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Aug 01, 2013 4:47 am Post subject: |
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4.4% of 2.2 million is 96800 won.
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