Korean Job Discussion Forums

[vox]

From the Canada-Korea tax treaty Article 21 (1)
Article 21 Non-Discrimination
(1) The nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances are or may be subjected.

If anybody can shed light on that I'd be really grateful. I think it means if a Canadian comes and works in Korea he/she can't be taxed more than he/she would have been taxed for the same work back home, in my case 14%. The foreign aide at the NTS is saying it's not for that but the truth is neither of us knows for sure. I wonder where I can get the original Hangeul or if there's a translation service. I've written to the Embassy but my understanding is the Embassy won't intervene.l 320,000 KRW is riding on the outcome.

[vox]

Sorry I'm typing with a bandaged finger. I meant 320,000KRW

[Njord]

As I understand it, this clause states that:

If you are a Canadian and you are in Korea then you should pay the same tax as a Korean living in Korea and earning the same amount as you.

(this is also implied from the title "non-discrimination")

[Njord]

Also, IANAL and I don't know anything about Korean law, but it is quite possible (even probable) that this treaty does not give individuals such as yourself any directly enforcable rights. (Your rights are governed by Korean tax law.) If you think the terms of the treaty are being violated, by all means contact your embassy. However, I wouldn't expect this to change your personal situation at all.

[vox]

Actually I pointed out to the foreign aide officer that p.59 of the 2005 Korean income tax guide indicates that the tax treaty has priority over domestic law. That means it is Korean tax law to conform to the terms of the treaty because it also acts for Koreans in Canada (supposedly).

The officer said at issue is resident or non-resident status separating me from Koreans in Korea. I was a non-resident but there still appears to be a cap even so. I wonder what the Hangeul translation and the embassy will say.

[mindmetoo]

I would agree with Njord. I don't think it's saying in Korea you should not be taxed higher than what you'd be taxed back in Canada for the same job. It's just saying there shouldn't be an extra tax levied by the Korean government for Canadians working in Korea.

What is the nature of your dispute? If you're a teacher, you should be paying no more than roughly 3% income tax. It's got nothing to do with any tax treaty.

[vox]

Hi,

You're right about resident teachers' taxes having nothing to do with the tax treaty UNLESS you're a teacher who's been hired for short-term employment (less than 90 days) (making you a non-resident) in which case you don't pay 3%, you pay 22% according to the Korean government NTS. Hence my retreat to the international tax treaty, and anything else that may hinder that amount, like the 2005 Korean Tax Guide for Foreigners which has been largely unhelpful. I'll gladly take any tax-rate-reducing advice for non-residents on c-4 visas.

Can you help?

[mindmetoo]

http://www.eslcafe.com/forums/korea/viewtopic.php?t=51151

The user seems to report such a high tax rate as well.