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Anyone else have to pay taxes in one lump sum?
« on: November 11, 2010, 01:27:24 pm »
So my co-teacher just imformed me that they have not been taking out any taxes from my paycheck and that I should be prepared to pay a large amount soon to make up for that. She said normally it comes out every month, but since I'm a foreigner it's a special case. She also said it would be helpful to print out money I have spent from like a credit card, because then you can get more back or something like that. But since I don't have a credit card I guess I'm out of luck there as well.

Does anyone else know anything about this? This is the first I've heard of it. Why didn't they take them out monthly? I don't really think it's because I'm a foreigner. Besides, if you're American aren't you exempt from taxes for the first 2 years??

Help, please! I'm totally in the dark about this.  :(


  • jehall
  • Veteran

    • 213

    • April 08, 2010, 01:20:16 pm
    • Uijeongbu, South Korea
Re: Anyone else have to pay taxes in one lump sum?
« Reply #1 on: November 11, 2010, 01:31:33 pm »
Taxes should have always been taking off but there was an issue where they just recently decided that taxes should've been deducted from our settlement allowance and flight and things like that. So maybe it's in relation to that?

And if you're American, I believe you still have to fill out the neccessary paperwork to get the tax exemption?

I'm sure someone with a more informed answer will post soon.


  • kaymac
  • Super Waygook

    • 259

    • September 25, 2009, 03:53:47 am
    • Yeosu
Re: Anyone else have to pay taxes in one lump sum?
« Reply #2 on: November 11, 2010, 01:33:23 pm »
Hey,
I had this whole thing go down at my school too. the whole receipt thing for spending your cash is I guess a way Korean's get income tax rebates in general. This has happened with lots of teacher's contracts. It's been a rule for a long time and just hasn't been enforced. You may be eligible to get the taxes back at some point down the road (i'm not sure how, I'm Canadian so we have to pay taxes here since we aren't paying them at home). You're not alone though, I had to pay a couple hundred  (or maybe more) around my one year because of the oversight. Could be worse though, they didn't catch the mistake with my sister until almost two years were up, so was a much bigger chunk!


  • Koradian
  • Fanatical Supporter!

    • 443

    • October 08, 2010, 10:29:15 am
    • South Korea
Re: Anyone else have to pay taxes in one lump sum?
« Reply #3 on: November 11, 2010, 01:34:51 pm »
I didn't have taxes deducted my first paycheck. I enquired and was told I had two options:

1. Pay a lump sum, or

2. Monthly decuctions

Monthly deductions makes budgeting a lot easier.

FYI: My monthly tax deduction is 23 350won. So, basically, a years lump sum would amount to 280 200. You can calculate what your tax deduction should be here http://www.nts.go.kr/eng/index.asp


  • Troy
  • Newgookin

    • 4

    • October 19, 2010, 10:05:53 am
    • Gunsan
Re: Anyone else have to pay taxes in one lump sum?
« Reply #4 on: November 11, 2010, 01:37:53 pm »
Taxes usually come out of your pay check.  But what happen is, whoever is in charge with finances forgot to do it.  You should also find out how much you have to pay.  I think it's less then 50,000 W a month not to sure on this figure.  It works out to about 4% or somewhere around that figure. 


Re: Anyone else have to pay taxes in one lump sum?
« Reply #5 on: November 11, 2010, 01:39:21 pm »
Out of all of this I have one question: as a Canadian I went home last year and paid all my canadian taxes according to the money I made overseas... that is to say, I owed the jerks $2000 in income tax, etc, even though i made my money out in Korea.

If this isn't necessary, I would love to know so. I pay taxes here but you get all of your pension back when you leave, and the rest is peanuts (probs about 23,000 a month, like Koreadickie said. I never had equated paying taxes here with not paying in Canada. I believe as a Canadian I must pay on my 'world income', and I was told last year that the only way to circumvent that is to void my citizenship or break the law. And I don't dig either idea. If there is a loophole, please be so kind.

I wish taxes were easier generally.



  • pyeager
  • Fanatical Supporter!

    • 221

    • January 19, 2010, 08:19:14 am
    • Korea
Re: Anyone else have to pay taxes in one lump sum?
« Reply #6 on: November 11, 2010, 02:32:17 pm »
I'm not Canadian, but I had a friend who was. In her case, she told me that she had to declare herself a nonresident to avoid taxes. You can't own anything like a car or a house and you have to close all of your Canadian bank accounts and credit cards. Sounds like a pain in the butt that might be worth $2k.

This might not be accurate, but I thought it might give you a place to start looking.


Re: Anyone else have to pay taxes in one lump sum?
« Reply #7 on: November 11, 2010, 02:44:14 pm »
Go with your co-teacher to the head admin and ask to have your taxes taken from your pay each check.


  • Janitor
  • Moderator - LVL 2

    • 956

    • June 14, 2010, 02:01:32 pm
    • Ulsan
Re: Anyone else have to pay taxes in one lump sum?
« Reply #8 on: November 11, 2010, 02:47:19 pm »
I worked in Korea for 4 years before going home and didn't pay my taxes on my income in Korea at all. What you have to do is declare yourself a "non-resident" for the time that you were away and the time that you will be away. There are two distinctions but the one is retroactive.

Basically, you fill out the form proving that you were a paying resident in Korea and the you paid bills, were an active member of society, and lived in Korea for a year or longer. This is then sent to a review board and they will then send you a letter back saying that you are indeed a non-resident, either for the time that you were away or the time that you are going to be away.

If you have students loans, you can keep your bank accounts and credit cards but you have to explain that to them. Driver's licenses are a good thing to pick up here because it shows that you gave up your Canadian one for the time that you were here. Keep some bills that have your name on them because it also shows that you are paying something to the government.

Other than that, you cannot have any property, vehicles, furniture or storage in your name in Canada. You are basically cutting off all ties beyond your citizenship and your passport. The people working for this government department are really nice and will help you if there are any problems.

After so many years away, the government actually paid me $1000 back! So all in all I was pretty happy. the procedure is pretty standard and you can download the forms off the internet and send them in.


  • pyeager
  • Fanatical Supporter!

    • 221

    • January 19, 2010, 08:19:14 am
    • Korea
Re: Anyone else have to pay taxes in one lump sum?
« Reply #9 on: November 11, 2010, 02:49:20 pm »
@farty

Here's the government's link about declaring yourself a non-resident of Canada: http://www.cra-arc.gc.ca/tx/nnrsdnts/ndvdls/nnrs-eng.html


  • togetbex
  • Adventurer

    • 42

    • November 04, 2010, 04:44:33 pm
    • South Korea
Re: Anyone else have to pay taxes in one lump sum?
« Reply #10 on: November 11, 2010, 02:54:08 pm »
Your school can apply for tax exemption for you! (If they are so inclined). I am here through TaLk and when I was in training, I was told that getting tax exemption was an arduous and lengthy process that needed to be started before I even left the States if I wanted to be tax exempt. I was told that everything needed to be done before I received my first paycheck. This is NOT the case....just this month my school submitted the paperwork on my behalf for tax exemption. Everyone's school is different (and has a different attitude) towards their EFL teachers, but you should definitely ask!!! My school is so awesome towards me  ;D


  • Davey
  • Moderator - LVL 3

    • 1820

    • February 01, 2010, 01:36:20 pm
Re: Anyone else have to pay taxes in one lump sum?
« Reply #11 on: November 11, 2010, 03:23:07 pm »
Out of all of this I have one question: as a Canadian I went home last year and paid all my canadian taxes according to the money I made overseas... that is to say, I owed the jerks $2000 in income tax, etc, even though i made my money out in Korea.

If this isn't necessary, I would love to know so. I pay taxes here but you get all of your pension back when you leave, and the rest is peanuts (probs about 23,000 a month, like Koreadickie said. I never had equated paying taxes here with not paying in Canada. I believe as a Canadian I must pay on my 'world income', and I was told last year that the only way to circumvent that is to void my citizenship or break the law. And I don't dig either idea. If there is a loophole, please be so kind.

I wish taxes were easier generally.


or you could break the law by simply not declaring your korean income the next time you do your return. i'd venture to say the CRA aren't likely to catch you (you could just tell them you were travelling/traveling if they investigate), but of course there's always that chance! ^^


« Last Edit: November 11, 2010, 03:27:17 pm by daveyc18 »
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