Korean Job Discussion Forums

[jennad]

So this month almost 900,000 won was taken out of my paycheck in taxes. I should mention that this is in addition to the almost 300,000 I paid in taxes every month in 2013, and that I'm also not a teacher. I work for a large company and have an E-7 visa (not sure if that makes a difference).

My boss said the amount was deducted because of Korea's year-end tax something something, but that doesn't explain why the amount is significantly larger than the amount deducted last February. Even my co-worker, who has been with our company for four years, said this is the highest amount of tax money he's seen deducted from his paycheck as well (he also had almost 900,000 won deducted, though strangely enough another co-worker who does the same work as us only had 150,000 won deducted???)

He and I went down to accounting with a translator where they printed off a bunch of forms and essentially told us that the amount is so high because we didn't qualify for any deductions......which still doesn't explain why it's so much more than last year.

I'm extremely frustrated and don't know where to go from here. My boss actually laughed at me and joked that I should "sue the company." I'm so overwhelmed I don't even know what questions I should be asking. I feel like none of the Koreans at my company seem to understand what the problem is.

Does this whole thing seem illegal to you? Is there anything I can do? Can I apply for a tax refund?

If anyone has any advice I would really REALLY appreciate it. Feel free to PM me for more info.

[schwa]

Ah, the mysteries of Korean tax time. I trust the good folks in my school admin office to handle it correctly. Some years I get money back with my february pay, some years I owe.

They ask me before filing about potential deductions: dependents, medical expenses, credit card or cash purchase paper trail. I have none. This year I had a 500k won shortfall. (My Korean co-t got hit considerably worse.)

The govt is always fiddling with taxation details & monthly withholdings (an estimate) are often out of step. Unless your bookkeeper overlooked some significant deduction claim on your part, I'd guess it is what is.

[YTMND]

[jennad]

[Canadian Club]

I'm on the same visa and had to pay the same. My partner, who is on the same salary and visa as I, paid about 200,000.

I have no idea why.

[jennad]

[Hokie21]

[Rockhard]

If you paid $3000 in taxes and made less than $40,000, that that might be something to shake a stick at, but if you made more than $40,000 it sounds about right.

[Hokie21]

Someone recommended using this site in another thread.

http://www.nts.go.kr/eng/

[nicwr2002]

Also, make sure you register your bank account with the tax office. Even if you pay in cash make sure you enter the number you registered with(usually your phone number I think). If not you could end uo owing money even though you over paid.

[Squire]

I got stung for about 850k this year, but last year I didn't spend much with my card at all. Practically everything I remember buying I bought online with my card from home, including all flights. I can take the hit though; it just happens that my hobbies aren't very expensive and I don't bother keeping up with the latest technology, so I end up spending very little.

[lowpo]

[IlIlNine]

Like in most places, the Korean tax code changes from time to time. Since you work for a large company, I assume that you used their internal system to file your taxes after downloading the relevant documents outlining your yearly expenditures from the YesOne government site. This is quite an accurate way of doing things, so I wouldn't immediately be suspicious of foul play. If you want to reduce your tax burden, there are a lot of things you can do that are beneficial, especially if you have long term plans in Korea. Off the top of my head, pretty much any kind of insurance (especially life, supplemental health), 3rd party pension saving plans, housing savings plans, credit card usage, shopping at traditional markets, etc - all help with taxes. Also make sure that you get the cash receipt everytime you can.

The tax code is available in English on the NTS homepage.

Even if your plans aren't long term, a lot of insurance and savings plans will allow you to cash out early.

Be proactive and you may find a sizable return next year.

If all else fails, take solace in the fact that you make enough money to warrant such a large tax bill.

[oppa637]

Doesn't seem like you got your deductions. Did you go to the yesone site and print your deductions for the year? If not, thats where your problem lies.

[wishfullthinkng]

this is why you should never use cash in korea. NEVER.

i haven't once had to pay taxes here, including this year. every year has netted me a return due to not paying in cash.