JEPIK원어민교사방

A : What is Double Taxation Exemption?

Double Taxation Exemption is what we mean when we talk about “tax exemption.” This means that you can avoid having to pay tax twice (in Korea and your home country) on income you earn abroad. If you can prove to the Korean tax authority that you are a tax resident of a country that has a tax agreement with Korea, you can be exempt from paying tax in Korea.

B : Can I be tax exempt as an English teacher in Korea?

It is likely, but there are a few qualifications. Canadian citizens are not eligible for tax exemption because Canada has no double taxation treaty with Korea. Those who have already worked in Korea for two years or more are not eligible. Also, there are a few work places that are not considered eligible for tax exemption and this is determined by the local Korean tax office, not EPIK.

C : Why are Canadian and some Irish citizens not able to obtain tax exemption in Korea?

Tax exemption laws follow bi-lateral taxation treaties between Korea and a particular country in question. Canada, for example, has no double taxation treaty with Korea and Canadian citizens therefore cannot be tax exempt in Korea.

D : If I don’t pay tax in Korea, do I have to pay tax in my home country?

This is not determined by laws in Korea. It is determined by laws in your home country.Questions concerning paying taxes in your home country should be directed to the appropriate taxation authority or expert in your home country. Due to the complexity of tax laws, EPIK cannot offer further information on this matter.

E : Is it cheaper to pay tax in Korea or in my home country?

You must consult a taxation authority or expert in your home country to determine what policies your country has pertaining to taxation of income earned abroad.It is often the case that, if you pay tax in Korea and the tax rate in your home country is higher, you will still have to pay a supplementary amount of tax in your home country in order to reach the total amount you would have been taxed if you had earned the income in your home country.Please see question G regarding how much tax you can expect to pay in Korea.

F : I have already worked in Korea for at least 2 years. Am I eligible for tax exemption?

No. By law, the maximum tax exemption time period is two years.

G : If I am tax exempt, do I still have to pay a Pension Premium?

Yes. Income tax is completely distinct from other deductions such as the Pension Premium, Health Insurance Premium, Resident tax and any other deductions mandated by the various levels of government in Korea. A teacher without tax exemption can probably expect to pay about 10% of his/her income in premiums/deductions. At the time of writing, American, Australian and Canadian citizens were eligible for a Pension Premium refund upon successful completion of their contract. For information regarding pension, please visit the National Pension Service website: http://english.nps.or.kr/jsppage/english/main.jsp

H : How can I obtain the appropriate proof of tax residency in my home country?

The details will depend on your country of residence. We have tried to offer assistance here, but the responsibility is ultimately on the income earner to obtain the required document(s) and other information.

 

AUSTRALIA Authority : Australian Government | Australian Taxation Office Website : www.ato.gov.au Webpages : www.ato.gov.au/businesses/content.asp?doc=/content/43288.htm&page=6&H6 Phone : 13-28-61

IRELAND Authority : Revenue | Irish Tax & Customs Website : www.revenue.ie Phone : Varies according to region. See contact details: http://www.revenue.ie/en/contact/index.html

NEW ZEALAND Authority : Inland Revenue Website : www.ird.govt.nz Phone : 0800-227-774http://www.ird.govt.nz/contact-us/#

SOUTH AFRICA Authority : South African Revenue Service Website : www.sars.gov.za Phone : 0800-00-7277

UNITED KINGDOM Authority : HM Revenue and Customs Website : www.hmrc.gov.uk

UNITED STATES Authority : Internal Revenue Service Website : www.irs.gov

For further information, you can also visit the English website of the National Tax Service of Korea: http://english.nps.or.kr/jsppage/english/main.jsp