Korean Job Discussion Forums

[frozenpeas]

I've been researching how much tax I should be paying (compared to the extremely large amount that I HAVE been paying each month...

I have a few questions that I would like to put to rest before I begin the uphill struggle of bringing this to my boss.

1. The Tax threshold is 10,0000 on 25 million won, right?

2. Am I eligible for the 30% foreigner deduction on my taxes? Are all foreigners eligible for one of the 2 foreigner tax breaks?

3. Using the calculator on the Korean tax office's website http://nts.go.kr/front/service/refer_cal/jungsan2005/eng/refer_2005jungsan_eng.asp

the total taxable income from a 25mil contract comes out at 10,245,000 won.

This is due to 3 unexplained deductions.

a) Basic Deduction - Taxpayer him/herself - 1,000,000
b) For Small Dependents - 1,000,000
c) Special Deduction - Total (or Standard Deduction) - 1,000,000

Does anyone one know what these deductions are and why they were automatically taken out my taxable earnings? This is of course a good thing, but I want to make sure I AM eligible for them!


Sorry for the complex post...Once I know these things then I can start helping other people too!

[polonius]

I went through the whole painful ordeal myself. You are NOT eligible if you are on an E2 visa. I called the taxman and was told this. Certain deductables are dependants, Pension payments, paying for schooling.

Keep all your records of what with holding tax the boss has been deducting. Every area has a tax advisor who makes sure that you are paying the correct tax. Get in touch with the one in your area. You will have to have a Korean talk to them. Most of the regional guys don't speak English.

I know I didn't answer all your questions, but that is all I know for certain on this topic.

[VirginIslander]

Contact hikemonster. He posts on Pusanweb. He is a tax god.