Korean Job Discussion Forums

[inkorea]

This company I am considering deducts 3 taxes. Income tax at around 10%, alien tax at 1%, and pension at around 4.5%. The pension tax and alien tax are fair enough. Income tax is the one I question. Does 10% seem a little high here in Korea, considering the very large population density?

[chronicpride]

That sounds out of whack. 3-5% is the norm. But I'd have to defer you to http://www.efl-law.com/tax.html

[VanIslander]

Alien tax? pension? I can't decide which is the bigger joke. My hagwon director subtracts 3 percent for tax and not a won more. I'm the only foreigner at the school and maybe he streamlines his paperwork somehow. I've heard of another place holding 5 percent. If they want to hold that much then perhaps negotiate a higher base to begin with.

[waterbaby]

Alien tax? that's a new one... could be legit but I've never heard of it or paid it. As mentioned about, you should only be paying around 3%.

I suggest you get in touch with the tax office & the pension office and see if you've been registered with them. I bet your boss is just pocketing the whole lot.

What does your contract say about tax? Mine said "according to Korean tax law" and my director deducted 7% and did for 10 months... long story but in short but we battled it out and he eventually caved and payed back the excess money he skimmed off us over the previous 10 months or so...

Send EFL-Law an email [email protected] and they'll give you some sound advice for what to do about it.

[Lost Seoul]

To find out if you are paying too much go to the Korean tax service's web site. Foreign teachers pay the same taxes as Koreans.

http://www.nts.go.kr/menu/index.asp?sub=menu5&svc=5_6&sub_menu=menu1&svc_id=743

It is all in Korean so here is a guide of what to do.

There are 3 boxes. The top box is how much money you make (in chung won), so 2.7 million is 2700 in the box. Same as 1.8 million=1800

The box below asks how many people are in the family.

Then click the box to the right of the bottom box and it tells you exactly how much tax you should pay.

Note: You may have to pay other taxes as well but it appears "Alien Tax" is a new one on all of us. If you are unsure contact your embassy.

US Embassy:

http://usembassy.state.gov/seoul/

Australian Embassy:

http://www.australia.or.kr

Canadian Embassy:

http://www.korea.gc.ca/

British Embassy:

http://www.britain.or.kr/home/index.html?cid=1&lang=e&mid=&mode=

[Squid]

Just a note to y'all, and I'm sure most of you know anyway, that regardless of what tax you pay whilst here, you must get it refunded to you prior to your departure from Korea.

The same goes for the Pension deductions, which is a little more difficult because they only can give it to you after you have left.

As is the case with other interests you create whilst here, planning ahead of time for any changes is essential. Don't leave it until the last minute.

I can't remember the name of the pension office right now, and wifey is asleep, so maybe I'll post it later, but your employer should pay you the tax back- in cash.

Squid.