Korean Job Discussion Forums

[melbournegirl]

Can someone give me some information on applying for a tax exemption. I refer to my contract which states; Article 13 # 3.

[sheba]

If you dont pay tax in Korea then you will probablyhave to pay it in your own country.

Im from NZ, and we must pay a 'global tax' which means we are taxed at the NZ rate of 20% or higher (depending on income) of all the money we earn in the country and overseas, if we are a resident of NZ that is.

however, if we officially become a resident of Korea (still a citizen of NZ), then we only have to pay the Korean tax which is below 5% and it has nothing to do with taxes back home.

Im not sure how the Aussie system works, but based on the NZ system, if you choose to remain a resident of your own country then you may not have to pay tax here but you will have to pay it back home..... you may be able to get away without paying any tax at all, but you may also get done for tax fraud if you dont declare your income at tax time back home and they find out about it.

My point being: Its much cheaper to pay tax here, even if your boss is ripping you off.

(As mentioned this is all based on NZ laws. Youll have to check the Aussies ones yourself)

PS: Melbourne is an awesome city.

[Captain Courageous]

Holy crap, 20%!?!?

[sheba]

[dimnd]

same in US..usually about 25 percent...depending on income...
what is the situation for a US citizen working in Korea..tax wise..anyone know?

[Grotto]

for US citizens I believe you can earn up to 70,000 USD a year and its tax free if you are a non resident....anything over that is taxed normally by the states.

For more precise info contact your American Embassy or IRS tax office.

[dogshed]

[escapeartist]

for Americans you need to be out of the US for a full 330 days before you can claim any exclusion of the money you make in a foreign country. Or you can exclude up to $80,000 of your foreign earned income if you are a "bonafide resident" of that country for a full tax year. I'm no expert though. This is just what I've gathered from reading publication 54 from the IRS. You can go to their website and read it yourself. Hope this helps.

[escapeartist]

My employer (a public high school) is not withholding any tax from me and I'm wondering if it's because I qualify under Article 13 #3 of Melbournegirl's post. However, I never submitted an application for tax exemption.

[kiwiliz]

IU haven';t paid tax in NZ for the last 3 years....I have been living in the UK and paid it there though.
Bu tmy lawyer said something like if I have income in NZ i have to pay tax on the NZ and the overseas income. Lucky I don't earn a cent there.
I hope he is right.

[kiwiliz]

My apologies for my inability to type and for being to lazy to proof-read!