21/05/2020
It’s Tax Season in Korea!
In order to get a tax refund, you must have paid the 3.3% income tax on a monthly basis.
Not everyone who pays income will get this particular refund. It depends on your employment conditions. Some workplaces employ you directly and will do a year-end adjustment in January, others will employ you as a private contractor and these are the people who are able to get the refund with the help of an accountant. From the invoice of withholding, we can know if you can apply in May or not. An example of an eligible form is shown. Either way, it is good to ask your workplace for your tax information ASAP just to know if you should HAVE gotten or should BE getting something. (It’s sad, but true, that some employers won’t tell you… If you received this in winter, no worries!)
You also must be living in Korea for one year. If you have only been here for part of your one-year contract, then you can still get a refund since the government will know based on your ARC number.
If you have only been in Korea since January, you are not entitled to a refund until next year since this is for your 2014 income tax only.
This applies to everyone. Unlike the pension, this has nothing to do with your nationality and trade agreements. Everyone living Korea and paying the 3.3% can get their refund. We have spoken personally to the Government Tax office and they have reassured us on this.
You can search out a means of doing this on your own as we have before, but the accountant we met a few years ago increased our returns by much more than we expected and we highly recommend using his services. We have gotten them before, and he has stated again this year, returns of up to 90% of the income tax you paid into. Some people want to know how much you will get exactly. He said at least 70%~90%. Depend on your salary. If you make more money, the percentage will be less. But Still more than 70%.
There is a fee, but it was worth the extra to get more than the fee’s worth in returns. Be careful when you do it on your own. One person we spoke to did it on his own 2 years in a row; the first time he got a refund, but the second time he needed to pay extra.
Whichever way you choose, hurry up and get your info together. The government will accept applications up to May, but the tax accountant wants his customers to apply with him ASAP. If you don’t get it in by May, you won’t get the chance to see that money again.
Don’t miss out on getting a nice bonus in June, just in time for summer!
If you want to apply please send email to us~
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