November 22, 2017, 08:55:48 PM

Author Topic: Taxes and F2 visa  (Read 385 times)

Offline Oskar5493

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Taxes and F2 visa
« on: November 08, 2017, 09:26:11 PM »
I am currently working on my F2 visa points, and I stumbled about a situation regarding taxes. I am to blame due to poor research but I found out this past April that the 3.3% is actually the wrong tax rate. I was wondering how this will affect me when I apply for my F2 visa when I apply probably late 2018. I am currently getting paid 2.3 million so I was wondering the following:

1. What is the correct tax rate? I can't seem to find a set tax percentage I should be paying.

2. When I correct my tax rate, is it possible that I can pay back the taxes I actually owe? I got paid 2.1 my last year at a different hagwon and now I'm getting paid 2.3, how would I go around figuring out how much I actually owe.

3. If I do pay back what I owe, will this resolve and prevent any problems I have when applying for my F2?

Offline ISHKABIBBLE

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Re: Taxes and F2 visa
« Reply #1 on: November 09, 2017, 10:27:13 AM »
Have you been at a 3.3% tax rate for the past two years?
If so, you have bigger issues. This means that your employers have been registering you as an independent contractor.
Which is illegal.
This means they haven't had to supply you with health insurance (or they offered you privatized health insurance), and that they haven't signed you up for the pension program.


Foreigners have the option of paying a flat tax rate for the first several years. It was just recently raised to 20.9%

From KRW   To KRW                             Percent
0                    12,000,000   
12,000,001   46,000,000           15
46,000,001   88,000,000           24
88,000,001   150,000,000      35
150,000,001   50,000,000      38
500,000,001   Over   170,600,000      40


I'm not certain if these are the most updated numbers.


The pension program requires you to pay 9% of your income into the program. Normally, your employer would pay 4.5% and you would pay the other 4.5%.
If this hasn't been happening, I believe you are on the hook for the entire 9% for each year there was no contribution.

By the end of your second contract (the first at 2.1 and the second at 2.3), I'm guessing, you will owe around 4,800,000 to your pension (unless your current employer has signed you up for the pension program and is making the correct contributions. Then the amount would only reflect your first year: ~2,300,000).

2) I think the above table is correct. You will have to pay back the back taxes in order to renew your visa. I'm not certain of any fees. However, I would be really interested to hear from you how this goes.

3) Paying the back taxes and the back pension should square you up. If you don't pay, you will not be able to renew your visa.
« Last Edit: November 09, 2017, 10:32:34 AM by ISHKABIBBLE »
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Offline Oskar5493

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Re: Taxes and F2 visa
« Reply #2 on: November 09, 2017, 11:14:00 PM »
Wow, I'm gonna have to pay back a lot of money... taxes and pension...  :-[
I read a lot online though, that you only have to show how much you paid from the 12 past months for income tax?
Is this true? If I were to switch schools and pay the correct tax rate for a year, before I apply wouldn't this be sufficient?

Offline ISHKABIBBLE

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Re: Taxes and F2 visa
« Reply #3 on: November 10, 2017, 07:53:12 AM »
The minute they try to sign you up for pension and health insurance, you would be found out. Then the bills will start flooding in. They will find you.

I suggest you contact the national pension board and the national tax service.
They will have a better idea of your options.
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Offline travelinpantsgirl

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Re: Taxes and F2 visa
« Reply #4 on: November 10, 2017, 10:17:39 AM »
Honestly, there's a good chance you will be denied for the F2 because of your contractor status. It will come up, as they ask for everything short of your blood for the F2 visa.

I am currently working on my F2 visa points, and I stumbled about a situation regarding taxes. I am to blame due to poor research but I found out this past April that the 3.3% is actually the wrong tax rate. I was wondering how this will affect me when I apply for my F2 visa when I apply probably late 2018. I am currently getting paid 2.3 million so I was wondering the following:

1. What is the correct tax rate? I can't seem to find a set tax percentage I should be paying.

2. When I correct my tax rate, is it possible that I can pay back the taxes I actually owe? I got paid 2.1 my last year at a different hagwon and now I'm getting paid 2.3, how would I go around figuring out how much I actually owe.

3. If I do pay back what I owe, will this resolve and prevent any problems I have when applying for my F2?
Ignoranţa este adesea o boală fatal şi cretin nu poate fi vindecata.

Offline travelinpantsgirl

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Re: Taxes and F2 visa
« Reply #5 on: November 10, 2017, 10:18:10 AM »
Also, is this a hagwon or an after school program?
Ignoranţa este adesea o boală fatal şi cretin nu poate fi vindecata.

Offline Oskar5493

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Re: Taxes and F2 visa
« Reply #6 on: November 10, 2017, 06:21:59 PM »
I work at a hagwon. I have health insurance except it's private, not national. Pension I am not paying. I wanted to start paying pension this upcoming January.

My hagwon in general is not a bad school, I don't mind it at all. My school already told me also they would switch my tax percentage over next contract if I renew. However, my coworker told me that I cannot stay at the school even if I wanted to because if I try to renew then I will be caught with my taxes. She recommended that I switch schools, because if I switch my school, she heard they don't generally ask you for your tax information. She said switch schools and find one that will do the legal tax percentage, and for me to start paying my pension once I switch my school.

Online gurudanny98

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Re: Taxes and F2 visa
« Reply #7 on: November 13, 2017, 09:57:18 AM »
Is there a way I can check my taxes without being put on the radar for possibly not being caught-up?

Offline Oskar5493

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Re: Taxes and F2 visa
« Reply #8 on: November 13, 2017, 06:30:11 PM »
Is there a way I can check my taxes without being put on the radar for possibly not being caught-up?

That's what I'm gonna try to do...
I'm saving up majority of all my paychecks before my contract ends in April, and try to pay up all if not most of what I can before I renew my visa. I'll contact the tax office in the near future, I'm really in a shitty situation since I haven't paid the proper tax rate or any pension for two years. Gotta start preparing now...

Online gurudanny98

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Re: Taxes and F2 visa
« Reply #9 on: November 13, 2017, 06:35:18 PM »
Is there a way I can check my taxes without being put on the radar for possibly not being caught-up?

That's what I'm gonna try to do...
I'm saving up majority of all my paychecks before my contract ends in April, and try to pay up all if not most of what I can before I renew my visa. I'll contact the tax office in the near future, I'm really in a shitty situation since I haven't paid the proper tax rate or any pension for two years. Gotta start preparing now...

please let me know how it goes.  I haven't been paying pension/health for about a year now sand I think the weong tax rate for about as long as I can remember

Offline travelinpantsgirl

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Re: Taxes and F2 visa
« Reply #10 on: November 14, 2017, 09:51:26 AM »
Is there a way I can check my taxes without being put on the radar for possibly not being caught-up?

That's what I'm gonna try to do...
I'm saving up majority of all my paychecks before my contract ends in April, and try to pay up all if not most of what I can before I renew my visa. I'll contact the tax office in the near future, I'm really in a shitty situation since I haven't paid the proper tax rate or any pension for two years. Gotta start preparing now...

please let me know how it goes.  I haven't been paying pension/health for about a year now sand I think the weong tax rate for about as long as I can remember
Dude, you're going to think I am being a naysayer but not paying into pension or NHIS EVER and being on the wrong tax rate is definitely going to come up, even if you get your ducks in a row and pay those taxes up, they're still going to review your NHIS/pension history, because it's illegal to not pay into both unless you're SA and then it's only illegal to not pay into NHIS. I think you're going to have a really tough time getting approved. If it were only your taxes, catching up and paying them might work but now you're in the hole for NHIS and Pension (if you're not SA).
Ignoranţa este adesea o boală fatal şi cretin nu poate fi vindecata.

Offline Oskar5493

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Re: Taxes and F2 visa
« Reply #11 on: November 14, 2017, 10:58:26 PM »
Is there a way I can check my taxes without being put on the radar for possibly not being caught-up?

That's what I'm gonna try to do...
I'm saving up majority of all my paychecks before my contract ends in April, and try to pay up all if not most of what I can before I renew my visa. I'll contact the tax office in the near future, I'm really in a shitty situation since I haven't paid the proper tax rate or any pension for two years. Gotta start preparing now...

please let me know how it goes.  I haven't been paying pension/health for about a year now sand I think the weong tax rate for about as long as I can remember
Dude, you're going to think I am being a naysayer but not paying into pension or NHIS EVER and being on the wrong tax rate is definitely going to come up, even if you get your ducks in a row and pay those taxes up, they're still going to review your NHIS/pension history, because it's illegal to not pay into both unless you're SA and then it's only illegal to not pay into NHIS. I think you're going to have a really tough time getting approved. If it were only your taxes, catching up and paying them might work but now you're in the hole for NHIS and Pension (if you're not SA).

What else can I do? I have to at least try, it's my dream to work and live here. I doubt there weren't other people in the same situation as me that haven't gotten approved. I'm not saying you are wrong, and I know it will be difficult. But I gotta do what I gotta do.
« Last Edit: November 14, 2017, 11:29:42 PM by Oskar5493 »

Offline Oskar5493

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Re: Taxes and F2 visa
« Reply #12 on: November 14, 2017, 11:30:28 PM »
Also what if I were to leave temporarily for like 6 months and then come back? Would this fix anything?

Offline travelinpantsgirl

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Re: Taxes and F2 visa
« Reply #13 on: November 15, 2017, 10:00:12 AM »
Yes and no. You'd have to start the clock all over again which means any time you have spent here, you lose towards the visa and you'd need to get a new background check. But yeah it would very likely reset your NHIS/pension/tax clock.
Also what if I were to leave temporarily for like 6 months and then come back? Would this fix anything?
Ignoranţa este adesea o boală fatal şi cretin nu poate fi vindecata.

Offline get_me_dog

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Re: Taxes and F2 visa
« Reply #14 on: November 15, 2017, 01:40:57 PM »
I am currently working on my F2 visa points, and I stumbled about a situation regarding taxes. I am to blame due to poor research but I found out this past April that the 3.3% is actually the wrong tax rate. I was wondering how this will affect me when I apply for my F2 visa when I apply probably late 2018. I am currently getting paid 2.3 million so I was wondering the following:

1. What is the correct tax rate? I can't seem to find a set tax percentage I should be paying.

2. When I correct my tax rate, is it possible that I can pay back the taxes I actually owe? I got paid 2.1 my last year at a different hagwon and now I'm getting paid 2.3, how would I go around figuring out how much I actually owe.

3. If I do pay back what I owe, will this resolve and prevent any problems I have when applying for my F2?

If the Employer sponsors your VISA you are not an Independent Contractor period.
The Labor Standards Act is very very clear and has very specific criteria of the required independence of an Independent Contractor.

As for the 3.3% Income Tax Withholding, that is the Legal requirement for the employer to withhold and it is a "prepayment" of Income Tax, Income Tax is based upon the tax treaty you have with your country of origin and Korea.  99.9% of all Income Tax Acts globally base Income Tax on Global Income, if you are an Independent Contractor then first you would pay Income Tax for your business (Sole Proprietorship) if you have not registered a Corporation.

If you are to pay tax as a Business, a Sole Proprietorship, an Independent Contractor then you would receive tax allowances i.e. 18 M KRW on "Entertainment and Meals" if the Income is Less than 40 M KRW; you file taxes like a company and you get tax write offs like a company.

If you do not have a Business Registration Number (Korean or International) you are NOT an Independent Contractor period.

For Reference this chart are some of the criteria utilized in a Korean Supreme Court Ruling and it is not comprehensive but it shows clearly that if your are an Independent Contractor you need to file Corporate Income Tax because you are operating a Sole Proprietorship FOLLOWED by PERSONAL Income Tax.

** from the Korean Labor Law Bible,  Author Bongsoo Jung, Korean Certified Public Labor Attorney, posted with the permission



The point is that anyone who has been told they are an "IC" who was working on and "E" VISA was simply misinformed by the Employer.  They are owed Severance, Pension etc, and there is a three year statute of limitations for the unpaid wages.

Offline Oskar5493

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Re: Taxes and F2 visa
« Reply #15 on: November 15, 2017, 09:33:59 PM »
I'm labeled as an employer in my contract but paying taxes like a contractor. It says in my contract I would be provided national health insurance but they never provided me with it. I was gonna report it along with my taxes, but I was stopped by my coworkers   because they worked their for like 3 years and were worried that if I reported it then they would get caught and have to payback 3 years worth of taxes as well. So I was stuck  :lipsrsealed: My Korean friend is gonna contact immigration for me soon and ask about my F2-7 situation. When I find out, I'll post what they said. This is all driving me nuts, a serious waiting game.