Korean Job Discussion Forums

[andrew.garth]

I owe 400 hundred some odd dollars this year. The assistant in the office said I can get the largest tax refund if I use a credit card. A Korean colleague said it is best if I use cash with the 현금영수증. My girlfriend said it is best if I use my debit card.

What's the deal? Is there some combination with certain proportions that will help me not have to pay so much next year?

[T-dot]

I wish I was only deducted 400.

Best to use cash/debit and then credit cards to cut down on what you owe. But, it also depends on how much you spend throughout the year.

[Jake_Kim]

Credit card: 15%
Check(/debit) card and 'Cash receipts': 30~40%

Deduction only kicks in for those expenditures in excess of 25% of total salary income.

That 40% deduction applies only for cash+check card expenditures made between July 2014 and June 2015 IN EXCESS OF the sum of cash+check card expenditures made in 2013. Those sums not exceeding one's 2013 expenditures still get 30% deduction.

[nicwr2002]

[wishfullthinkng]

only complete fools use cash in korea.

yes you can use your tax number every time you use cash but it's a huge pain. use your debit card or if you plan on staying here for a while, use your credit card to build credit.

most debit cards have reward programs and of course all credit cards do as well.

the ONLY time one should use cash here is for something like paying entrance into a club where they don't take credit at the door. then use your card once inside.

[saram_]

As an Independent Contractor... I don't get any benefits except for the odd deal here and there for using my Credit Card.

Not entitled to any tax returns..
It was different when I worked for an academy before though.

Hoping my Tax Bill this year wont be too huge!!

[Cave Dweller]

It is Koreas way of flushing out at least some of the hge underground market here. Tax cheats galore.

[Wildbore]

Independent contractors are entitled to do tax returns.

[saram_]

2 years ago I went to the Tax Office thinking I may be entitled to Tax returns as an Independent Contractor.

Well it turned out I owed an extra 670k.
I wasn't entitled to any returns from Card usage or anything else.

Last year, I got a letter saying I owed over 3 times more than that.

I ll be doing my making sure to have my taxes done properly this time in
May (Independent Contractor Tax Renewal).
Would be great to get some returns on Credit Card, etc usage but not holding my breath.

When I was working at Hagwon before- I did get some returns.

Independent Contractors are prob better off going under the radar for as long as possible. I have been sucked in now.

[nicwr2002]

Back before I knew better, I had told my previous employer to tax me at 3.3%. When it got close to tax time, the owner came to me and said that she had been taxing much too much to past 12 months. I thought, "Yes! I should get some money back this year." Turns out I still had to pay about 150k even though I had over paid by a lot the whole year. The whole tax thing is too confusing.

No, the owner didn't trick me.

[MedellinHeel]

What happens if we do not file taxes? Been in Korea for almost 3 years and at my new job is the first time anyone has said anything about me doing my taxes.