Korean Job Discussion Forums

[oldfatfarang]

Last year I overpaid Income Tax by 3%.
My employer deducted 4.5 % but the correct rate should have been 1.6 %.
I used the automatic calculator on the KNTS website. Using my Gross salary (1.800,000) I should have paid 386,840 won in tax for 2005.
However, I paid 1.053,000 won. So I overpaid my income tax by 666,160 won.

Orginally I clicked the 'Foreigner' rebate on the automatic calculator. This gave me an additional 30 % rebate. But my employer and the KNTS say this is incorrect. I should NOT click the 30 % Foreigner Rebate on the website calculator.

The KNTS Foreigner Helpline guy said I should
(a) get the 666,160 overpaid from my Employer (School) and then
(b) apply for the 30 % Foreigner Rebate by completing a Tax Return Form and handing it to the KNTS in May.

Any ideas about this 30 % Foreigner Rebate stuff????
The KNTS say that ALL Foreigners in Korea should get this rebate.

MY employer is very unhappy at refunding this money and is dragging the chain.

[LarrytheGiraffee]

You could try telling your boss that if you dont get your money back, then you will insist that you get a copy of "receipt of wage and salary income taxes withholding". Chances are if you are being charged too much for taxes then your employer is also lying to the government about how much to actually make. By doing this, they claim you make less then you did and end the end they pay very little to the government on you behalf (for example: my old employer claimed I made only 17 million the entire year which allowed him to pay only 38,000 for the entire year taxes). By demanding the form, you may find out the same thing.

Good luck getting some money or the form.

[Gord]

[oldfatfarang]

I spoke to the KNTS Foreigner Help Line.
They said I can't get my overpaid tax from my KNTS.
My overpaid tax HAS to be refunded by my employer (in January every year).

My employer keeps saying he will file his taxes in May (that's correct with Korean law).

What I am trying to do is get my overpaid tax from him as I know he will not forward my overpaid tax to the KNTS.

I will ask my employer to sign (and seal stamp) the With holding Taxes Form this week that shows I have paid 1053,000 and should only have paid (330,000 approx).

The Foreigner Help Line guy said I should ring him again if my employer refuses to issue me this With holding Taxes Form.

Has anyone out there managed to get overpaid tax refunded by their employer????

[LarrytheGiraffee]

I just recently got the money that I overpaid in tax. Really it was much easier than I thought it would be. I did have to call repeatedly, but I just kept at it. After about 2 weeks of calling 3 or 4 times a week, I got the Withholding form sent. It turned out that not only had I been over taxed, but my old employer claimed I made less than I did. Because of this, he only paid 38,000 won for the entire year on my behalf. I subtracted the amount he actually paid from the amount I paid and demanded the rest.

The money was in my account about a week later. He refused to admit that he was repaying me for over paid taxes. He said other past teachers could come after him if he did. So he said the money was a recruiting fee (I helped him find a teacher back in Oct.)

However, another teacher I worked with at the school is now attempting to do the same thing. He is having a much more difficult time than I am. The director is just refusing to give him the form. KNTS can help, but really all I think they do is call for you and ask why the form isnt being issued.

Good luck getting your money. You really should get the Withholding form and something that shows the breakdown of what was deducted from your pay every month. If you dont have the breakdown of deductions, it leaves room for him to lie about what money was being taken out form.