Korean Job Discussion Forums

[time for adventure]

Hey there

I know another tax question. I have looked at the previous posts but need some stuff clarified. Okay so I have been in Korea almost a year now and plan to go back to Canada in 3 months.

What is the deal with the tax situation? Do I need to file? My B/F called and they said that I can't wait until I come back to Canada and just file then. Sounds like some people just wait and nothing happens though.

In terms of ties, I still have a bank account, car, license, health insurance and credit cards, so I am thinking that I am still a resident officially.

I also heard that you might be able to claim other expenses such as moving, visa fees etc... What about paying health insurance and pension here? Has anyone does this?

Also when people have filed, have you been stung with having to pay a lot? This seems crazy that we have to pay when we are not enjoying any of the benefits of living there, and can't even collect unemployment when we come home!!!


Any information would be appreciated

[inspector gadget]

You will be considered a resident, that is what happened with me the first year.

Claiming things, I doubt it, a tax lawyer did my return in 2003 and there was no mention of that.

My base salary was 2 million and I had to pay about 1145.00 cdn to the tax man for the income earned over here.

It didn't bother me too much cause I saved over 20, 000 cdn. And claiming non residency would have meant selling my car, my properties, closing bank accounts, hiding rrsps, ditching my license and health card along with about 5 or 6 other things.

Just to many things to cancell and then have the hassle of trying to get all that stuff back again not worth it pay your thousand bucks and be done with it. Unless you plan on staying here for more than two years.

[demianamar]

Apparently, Canada has a deal with Korea so that if you can prove you've paid your dues to Korea then you won't be double taxed on the same salary when you go home. But of course first you have to prove it. Anyway, I found this website quite helpful in finding out residential status. I personally will not be filing this year and have yet to determine if that holds a penalty.

http://www.cra-arc.gc.ca/tax/nonresidents/individuals/leaving-e.html

[khyber]

I know a guy who hasn't filed taxes for years....but onto me:

1) What is required to prove that I have paid taxes?

[peppermint]

Good question, I've been paying taxes for years and apparently the tax office has no record of me!

[TOGirl]

I applied for the non-residency status in Canada and got it and I still had a bank account to pay student loans, credit cards and drivers license but no property or anything.

In February I went to my Dad's accountant before I left to come here again and they said that I didn't have to do anything since I had the non-residency.

You can still apply for the status, they let you do it anytime before your year is up. So you might want to look into that.

On another note, my friend didn't apply and didn't claim any of her income and nothing has happened to her so far.

[Captain Corea]

I didn't file for 5 years. When I finally did the only ting they said to me was thanks.

They can bugger themselves saying you can't wait. Wait all you like! Especially if you don't owe. If you owe though... be prepared for interest.

[Homer]

When you file for non-residency...you do not lose your bank accounts, car liscense or credit cards!

As for taxes, if you pay tax here you do not need to pay tax in Canada on your Korean income.

If you have interest earning investments in Canada...you have to pay tax on that.

[Hobophobic]

[peppermint]

I got told to ask the schools for a tax certificate, and I suppose I have to bring them to the tax office. You won't have a record for 2005 yet though

[Hobophobic]

[inspector gadget]

if you are deemed a resident of canada and you have paid tax here in korea, you will still have to pay tax in Canada

Say you pay 2.2 % in Korea, you won't be taxed on that in Canada however you are still liable for anything from 2.2 % up to the threshold of the canadian limit

In essence you won't be double taxed on what you payed as tax in korea but you will still pay more

look on the FAQ section for a thread about canadian taxes it is very good

And yes Canada and Korea have a tax treaty so that they can ask the k gov for any and all information relating to you if they want to.

I paid taxes my first year, then I worked on board a cruise ship for 14 months, I am not claiming that income but I will again claim my income here in Korea for my second contract.

you can have up to three or for secondary ties, any more than that is likely too many(bank account/credit card/insurance /health card /drivers license/library card/magazine subscriptions etc) and be a non resident. However if you have any primary ties ( a car/ property/investments/RRSP's etc) and a few secondary they will likely deny your claim.

if your unsure you can contact a tax lawyer but remember they are very expensive. As I said earlier if you are unsure just pay the 1000 bucks or so and be done with it. Good luck

[Hobophobic]

I am assuming I will have to fill out the NR73/74 forms...

... the only ties I have to Canada after reading thru all the info on the CRA site seem to be my passport and son...who lives here with me....

...I have no driver's, bank account, credit cards, property, health card...nada...haven't lived or worked in Canada for almost 5 years...and my visiting has been a total of 2 months spread out....

I guess I will know more once I track down and get my tax papers from my old school's head office weasels...

[pocariboy73]

How do you officially "file" for non-residency?

From all I can find out, there are no forms to send them to declare yourself one. Just an unofficial checklist you can either do yourself to see about your ties or fill it out and send it to Revenue Canada for their jugement. But, this in itself, does not officially grant you the status of non-resident. It just tells you whether or not you can be considered one for tax puropses.

All in all, its very unclear and from what I can find out, there are no clear instructions on what to do. Perhaps I'm overlooking something....

[kathycanuck]

A father and his son were eating hotdogs in the mall when the boy began to choke. After desperately trying to dislodge the obstruction, the father began to call for help. A lady approached the boy, grabbed him by his private parts and gave a terrific yank. The boy gasped, and out popped the offending bite of hotdog.
"Thank God there was a doctor here to help us!" cried the grateful parent.
"I'm not a doctor", the lady replied.




"I'm with Revenue Canada".