Korean Job Discussion Forums

Patrique · Joined: 04 Oct 2007 Location: Sajik-dong, Busan

I'm leaving for Korea in just over a week. A friend of mine suggested I declare non-residency in order to avoid paying taxes. However I plan on returning to Canada with less than $10 000 - if I lied about what I had been up to, couldn't I just avoid the whole thing that way? Did any Canadians out there declare non-residency before they left?

peppermint · Posted: Mon Nov 26, 2007 9:43 pm Post subject:

I did, but I was there for 4 years. It's probably not worth doing if you're only going for a year.

biggpoppa · Joined: 14 Jul 2007 Location: Toronto, Ontario, Canada

remember you've already been taxed in korea, you don't have to be taxed on that once you come back home...you didn't make any income in Canada, so claim it that way...unless you were bringing some huge amount of money then you may have problems...10k won't even show up on their radar...

JAWINSEOUL · Joined: 19 Nov 2005

I declared, but that's not all you need to do. If you read the Government Of Canada website, you will see that you need make sure you have no ties inside Canada including:

RRSP accounts
loans
residences
drivers licence
credit Cards
ect...

Even if you claim non-residency status, the government can still tax you if they believe you have ties inside Canada.

Newbie · Joined: 07 Feb 2003

BRawk · Joined: 14 Oct 2007

I, too, am interested.

I have worked here for almost three years, and I did not declare non-residency.

I have heard that it is not necessary to declare before you leave any longer, but I don't know this to be fact.

Has anyone had any experience with this. Either going home with a large amount and not declaring...or going home and paying tax?

wings · Joined: 09 Nov 2006

JungMin · Joined: 18 May 2005

littlelisa · Joined: 12 Jun 2007 Location: Seoul

Newbie · Joined: 07 Feb 2003

JAWINSEOUL · Joined: 19 Nov 2005

Yes some ties are allowed, but who knows what mood the tax officer will be in that day.

peppermint · Posted: Tue Nov 27, 2007 2:35 am Post subject:

It's not quite as simple as listing your ties to Canada. You list your financial ties to Canada, including property owned there, and do the same for Korea. Health insurance, property and investments are pretty big ties to Canada. I had student loans, a bank account and drivers licence, and that wasn't a problem though.

Under ties to Korea, you can mention things like contracts for cellphone and internet, Kotesol membership along with the usual bank accounts etc., and all the stuff you bought with you, or while you were there. You want to make it look like your ties to Korea are stronger than those to Canada for them to declare you a non resident.

The non residency paperwork, and your first tax return when you get back take an eternity to process, as there's only one small office that handles them. When I worked for the Canada Revenue Agency last year, anytime there was an NR form, or a date of entry/departure on the return, it got routed to that office

Mea · Joined: 24 Mar 2006

I didn't bother filling out the form because I thought it was just their opinion, and I decided for myself that I'm a non-resident. I don't plan to return to Canada to live for many years, and my only ties are 2 bank accounts and a student loan. I do send money home a few times a year to pay off the loan and sometimes worry that they'll look into it and wonder where the money is coming from, if I don't file again...

On my 2006 tax form, I put my Korean address down and only claimed my Canadian income since I didn't come to Korea til 2007. I have no idea what I will do next spring - simply stop filing or put income at 0?

funkywinkerbeans · Joined: 17 Feb 2006 Location: seoul

The problem with declaring non residence status is there's no set criteria. I filled out the form years ago and was declared a resident of both Canada and Korea. I phoned up some bureacrat in Ottawa and had a long discussion about this dual status that they declared I was.

AA friend with around the same ties as I had was declared a non resident

According to this bureacrat because I was declared a dual resident, I only pay Canadian taxes on my Canadian earned money and Korean Taxes on The Korean Money.

As another poster stated, they seem to look at primary ties such as property, health care card, car, government cheques, to determine status.

Others such as bank account, credit card, driver's license seem to be less primary ties.

SeoulShakin · Joined: 05 Jan 2006 Location: Seoul

The thought of taxes makes my stomach churn. I hate filing taxes.

This is my second contract in Korea, and I didn't file taxes last year at all. This year I suppose I'll have to, since my contract is up at the end of February and I think I'll be going home.

I didn't declare non-residency. I still have my drivers licence, bank account, credit cards, and student line of credit at home. I think I'm screwed.

Does anyone know any way around this? My Mom said she was talking to someone at home whose daughter was in Japan. This woman said something like if you have been out of the country for more than 2 years, you don't have to worry about it? Something like that? Does that sound familiar to anyone, or is my Mom completely nuts? I hope she's right.