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Overture1928
Joined: 12 Jan 2014
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 Posted: Wed Feb 04, 2015 9:15 pm Post subject: Taxes for Canadian working under 2 years? |
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| I am Canadian. Started working in Korea in October 2013, worked one job for 4.5 months, then started a new job in May of 2014 and have been working here since. My boss asked me to go to the bank to get some printout of what I spend per month so she can use it to file my taxes. I feel like I read somewhere on Dave's that if you have worked in Korea for under 2 years you do not need to file taxes. However, I am not sure if that is for all foreigners or just Americans or Canadians. Can anyone point me in the right direction? |
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schwa
Joined: 18 Jan 2003
Location: Yap
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| Posted: Wed Feb 04, 2015 11:17 pm Post subject: |
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| No exemption for Canucks. |
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ttompatz
Joined: 05 Sep 2005
Location: Kwangju, South Korea
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| Posted: Thu Feb 05, 2015 12:25 am Post subject: Re: Taxes for Canadian working under 2 years? |
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| Overture1928 wrote: |
| I am Canadian. Started working in Korea in October 2013, worked one job for 4.5 months, then started a new job in May of 2014 and have been working here since. My boss asked me to go to the bank to get some printout of what I spend per month so she can use it to file my taxes. I feel like I read somewhere on Dave's that if you have worked in Korea for under 2 years you do not need to file taxes. However, I am not sure if that is for all foreigners or just Americans or Canadians. Can anyone point me in the right direction? |
Under a bilateral treaty, Canadians who pay taxes on their Korean income are not double taxed when they return home.
Under that same treaty they are also NOT entitled to the 2 year tax holiday that is enjoyed by some of the other E2 countries.
It is also of note here that the tax holiday ONLY APPLIES to those working in public schools or publicly funded universities and only for your 1st two years in Korea (not two working years). They also have to be deemed tax resident in their home country to qualify.
It NEVER applied to hagwon workers.
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OBwannabe
Joined: 16 Feb 2008
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| Posted: Fri Feb 06, 2015 7:11 pm Post subject: Re: Taxes for Canadian working under 2 years? |
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| ttompatz wrote: |
| Overture1928 wrote: |
| I am Canadian. Started working in Korea in October 2013, worked one job for 4.5 months, then started a new job in May of 2014 and have been working here since. My boss asked me to go to the bank to get some printout of what I spend per month so she can use it to file my taxes. I feel like I read somewhere on Dave's that if you have worked in Korea for under 2 years you do not need to file taxes. However, I am not sure if that is for all foreigners or just Americans or Canadians. Can anyone point me in the right direction? |
Under a bilateral treaty, Canadians who pay taxes on their Korean income are not double taxed when they return home.
Under that same treaty they are also NOT entitled to the 2 year tax holiday that is enjoyed by some of the other E2 countries.
It is also of note here that the tax holiday ONLY APPLIES to those working in public schools or publicly funded universities and only for your 1st two years in Korea (not two working years). They also have to be deemed tax resident in their home country to qualify.
It NEVER applied to hagwon workers.
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Sorry to hijack, but Ttompatz, does this mean that Canucks who are/were working in Korea for an entire tax year do not have to file their Canadian income tax? Or does one file, but state that they were working in Korea and state how much they made in Korean won? |
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schwa
Joined: 18 Jan 2003
Location: Yap
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| Posted: Fri Feb 06, 2015 9:56 pm Post subject: |
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Canadians can be taxed on Korean income if the tax boys back home determine you were not non-resident (significant ties, evident intention to return, etc).
Not being double taxed means you can deduct Korean taxes you paid from what you would owe at Canadian tax rates on that Korean income. Which means you would probably owe a substantial difference. If you've just been away a year or two, they will want tax returns with details eventually.
Americans have to file annually but Canadians can let it slide & catch up later. The Korean & Canadian tax offices do not share information. But dont count on explaining a year in Korea to CRA as just "travel," they're wise to that. |
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Weigookin74
Joined: 26 Oct 2009
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| Posted: Sun Feb 08, 2015 5:30 pm Post subject: |
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| Revenue Canada did give me a letter my first year saying I was a non resident. Haven't looked back. But, had recently heard that I may still have to declare my years of income. I haven't done it. Guess if I end up being gone 10 years or more, it won't be a tax bill I'd owe. But, maybe soe penalty for not filing? Not sure. Any long term Canucks run into problems with revenue Canada when they returned? |
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