South Korean Tax Information for English Teachers
Local income tax is deducted from the monthly salary. On an average, one has to pay 3-4% of the salary for tax clearance. The resident tax is 10% of the income tax. After getting a job as an ESL teacher, you are expected to file a tax return.
The most common question is whether these teachers have to pay taxes even for their home country or not while serving Korea.
Tax implications for Americans:
If you are an American citizen and working and living in Korea, your tax is exempted by the US government only when your income is less than $ 80,000 USD per year. In this case, you have to prove that you have a home in Korea implying that you are planning to settle there. Documents that need to be produced are:
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Cell phone bills
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Bank account
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Utility bills in your name
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Phone bill
You also have to prove that you are physically living in Korea for 330 days within a year. Fill up the IRS form so that you are not asked to pay income taxes in both the countries.
Tax implications for Canadians:
Canada has entered into a wonderful tax treaty with South Korea. So, if you are working in South Korea with a legal visa, you are considered to be the resident of Korea and in this case you are not required to pay tax for Canada but for Korea.
