Korean Job Discussion Forums

[potin14p]

our school has suddenly presented us with some tax form, saying we are now getting taxed for housing, and as a result, we all suddenly owe money.
is anyone else getting taxed for housing, or does anyone know anything about this?
our school is usually pretty good, we get good apartments, they treat us well, but something does seem a bit off, especially as some teachers are getting money as a result of this, and others have to pay around W250 000.
please help?!

[alabamaman]

If I'm correct you are talking about "residence tax" which is calculated in the following manner: "Total amount deducted from your monthly salary for income tax ( x ) 10%." Residence tax is a very SMALL deduction from your monthly salary. Is your employer providing you with pay receipts that clearly states all deductions, taxes, and monthly salary?

[potin14p]

hmmm not sure. our foreign manager (he's not Korean) is a dim-wit, and our korean manager just confuses us even more, because her English isnt great. but i will ask tomorrow and see.

[potin14p]

is there any "idiots guide to Korean tax" available? the Tax Depts website is a maze of confusion, and I really dont understand anything tax-related.

[Metsuke]

Its not residence tax...

Waiting for the eye to chime in...

[wylies99]

Scam?

[ontheway]

We really need more information to know what this is. Are you saying that they are now including your housing allowance as income in calculating your income tax? There are circumstances where this would be the correct way of computing your income tax. It seems you need to find out more.

Do you pay for health insurance, how much, do you have an insurance booklet?

Do you pay pension, how much?

How much income tax did you pay before this change? Did this change your income tax, or is it some additional tax?

Is this really not a tax at all, is it your condo management fee?

This could be a scam or it could be legit. We can't know that answer without some info.

[insam]

[yingwenlaoshi]

Seems to me that your employer would want to avoid paying any extra taxes and would rather have all of that under that table if possible. Therefore, it could be a scam if they're saying that your housing should be taxable income.

Need more details on what your deductions are, etc. so we can get a better idea about the whole thing.

I think that even housing allowances (money given to you for housing) are not taxed if they're not higher than a certain amount.

[yingwenlaoshi]

[tob55]

Ask them for the form and tell them you want to understand it so you are going to the immigration office to have them explain it to you...If they are scamming you then they will probably resist having you take the form and go to the immigration office...if they are not, then they should happily give over the document and let you check it out...it is really that simple...BUT don't give away any money until you have had a chance to have the document explained by someone who speaks English, and someone who is not your employer...

Also remind them that if they take any money out of your pay without your authorization that is stealing and you will report it to the immigration authorities as well as the labor people...This should really provide you with enough to determine if they are pulling a fast one on you...

[potin14p]

thanks for all the info, I'll try asking them for a form to "take to immigration" today and see what they do.
The strange thing is the discrepencies between what teachers owe. Some teachers are getting money back (around S100), while other teachers owe about $250.

[potin14p]

well we confronted management today, and they have all scurried off to have an emergency meeting to "come up with answers", which is funny because to me, "come up with" translates to "make up something". , ie "Kids, can you please come up with a creative writing idea" etc etc.
I am still waiting on my latest pay slip, but the info they've given me so far is this:


Month Pay Income tax Residence tax Tax sum
July(7) 2,254,850 78,919 7,891 86,810
August( 2,700,000 94,500 9,450 103,950
September(9)2,700,000 94,500 9,450 103,950
October(10) 2,700,000 94,500 9,450 103,950
November(11)2,700,000 94,500 9,450 103,950
December(12) 2,700,000 94,500 9,450 103,950
sum 15,754,850 551,419 55,141 606,560



1, Total Income 15,754,850 (Last year's total Income)
2, Exemption (*0.529) (Exemption for General
(necessity) expenses (*0.529))
3,(1-2) 7,420,534 (Adjusted Gross Income)
4, Exemption 2,100,000 (Man;-1,600,000),
(Woman;-2,100,000)
5,(3-4) 5,320,534
6, Exemption (*0.0 (Over ten million;*0.17-900,000),
(Under ten million;*0.0
7, (5-6) 425,642 (A fixed tax amount for the Income
2006)

* Income tax
1, 425,642 A fixed tax amount for the Income 2006'
2, 551,419 Sum of your income tax you've been paid every month in 2006
3, 125,777 A tax return for income

* Residence tax ; (Income tax * 10%)
1, 42,564 A fixed residence tax
2, 55,141 Sum of your residence tax
3, 12,577 A tax return for residence


hope that makes sense. I think we've given them a real fright by reacting so strongly....
As soon as i get my payslip, I'll include as many details as possible.

[sojourner1]

Yes, I have 2 taxes taken out of my pay, one is 10% of the other. One is like 80,000 Won and the other is 8,000 Won. Tax descriptions are in Hanguel script on the pay slip so I could only assume it was income taxes. I thought they were Korea federal and province taxes. I know the big one is federal and the little one is either provice or probably... residence as mentioned previously.

Oh crap, I still need to do my home country tax filing.

[Squid]

OP- I have taken a housing allowance for the past 3 years and it's always been counted as taxable income...

See this thread:

http://forums.eslcafe.com/korea/viewtopic.php?t=88357



The 10% thing...

It's Resident's Tax, but appears on my slip as Inhabitants Tax...

It's 10% of your income tax amount.

An employer can charge you this amount monthly or as a lump sum yearly.