Korean Job Discussion Forums

[corroonb]

Are there any income taxes besides basic income taxes that an ESL teacher should be paying? I received a contract today where the tax rate is identified as 5% including income tax, local tax and rent tax. Is there any such thing as local or rent tax?

[ttompatz]

[corroonb]

Thanks, I thought that was the case. I'll ask if they will negotiate, if not, I say no!

[polonius]

Most people here do not understand the tax system in Korea.

#1 there is a withholding tax. You can search that on the korean tax page. But most employers will deduct 3-5%.

#2 if you make more than a certain amount, you can be liable to pay more taxes.

#3 if you are only in Korea for a short term time, then don't worry about it. If you plan to be here longer, then make sure that every May, you receive you tax package, and fill it out accordinly.

I owed an extra 600,000 won tax, on top of the 3.3 percent that I paid. I have documentation from the tax office, as well as my school saying that the withholding tax was paid, however because of my salary (over 2.6) I need to pay more.

Bottom line is, if you plan only to stay for one year, you shouldn't be paying more than 3.3%. If you have been here longer, the taxman will find you, hunt you down, and tell you you owe more money, plus an interest on the late fees, (which you had no idea about).

I have sent numorous email to the tax office, complaining about this. I have no problem paying taxes, when I am aware that I must. And I will pay penalties, if the problem is my own. (In my case, I had no idea, so I feel that it is not my responsibility)

All I would suggest is to talk to a foreign teacher who has been here a while. Or got to immigration, or rather the Korean taxe bureau to explain your plight.



Good luck.

[Grotto]

on the other hand if you are only making 2 mil you shouldnt be paying more than 30,000 won per month!