Korean Job Discussion Forums

Sandwich · Joined: 31 Jan 2007

I'm half way through my teaching contract with my Hagwon and basically found out that from the money my employer holds back for bills each month (which she pays on my belhalf), tax has not been deducted.

My question is, If i were to not acknowledge this would i be detained at the airport when trying to leave Korea or something simmilar? I guess is it better to just tell my employer i want to pay it, and all back-dated tax now to save any hassle further down the line, though i'm not sure how she will react.
And why has she not bothered to register me to pay tax? I suspect to aviod paying her portion...

thanks

ttompatz · Joined: 05 Sep 2005 Location: Kwangju, South Korea

polonius · Joined: 05 Jun 2004

No you won't be detained. Very often here the left hand doesn't know what the right hand is doing. The only thing you would have to worry about is if you came back to work here later on down the road, and someone at the tax office picked up on the fact that you didn't pay. And if they do figure it out, the penalty percentage is very small.

Your employer doesn't have to pay any tax on your behalf. She is required to pay 50% of medical, and 50% of pension. I would double check your pay stubs to see if she did in fact deduct the tax.

Sandwich · Joined: 31 Jan 2007

thanks guys.

polonius: She holds back some of my wages to pay the bills herself as she said it's just easier that way??? she gives me the money left over half way through the month. I'm not too fussed about that. furthermore, i couldn't really check my payslips as i don't get any, but have sat down and worked out that apart from bills i pay absolutely nothing else; niether does she.

ttompatz: do you have a link to, or any more infomation regarding the penalty charge if the tax office hit me with it. I'm thinking about returning next year, so it'd be heplful to know of any potential problems beforehand.

thanks again

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peppermint · Posted: Mon Jun 25, 2007 7:45 pm Post subject:

you're actually in a pretty decent position there, OP.

Not only with the national tax service do nothing to you, if tipped off they would probably do a full audit of your school. That can be a rather useful negotiating tool in the 11th month. Twisted Evil

here's the link to the National tax service hotline for foreigners:
http://www.nts.go.kr/eng/default.html