Individual Income Tax Return(종합소득세)
You may get this letter from the NTS already, you need to prepare the return and should be filed by the end of May.
If you left already my country, still you need to file to reduce or get some refund as well.
Every individual who got this notice letter may have some income to file in 2016 FY, especially freelancer's income(withholding 3.3%), saying contractors' or combined one with like a salary income.
A lot of expat assumed that once his employer withhold 3.3% tax, his tax liability to pay more or responsibility to file is done, but absolutely wrong.
Even I found that a professor had salary income from 3 schools, and didn't file a combined one, and almost mad when she got 10mil.won tax notice letter in a following year.
The following is the case which is a possible for you;
1. Freelancer income only
- In case of more than a single employer, you need to file those income by the end of May
- Even with a single employer, you need to file again by the end of May
2. Combined income
- If you're an employee of a company getting a salary income and had an freelancer's income, you need to file those combined income
- If you had more than an employer and withhold 3.3% tax respectively, still you need to file again these combined income
- If you had more than 2 employers, and if it's not filed for the combined income on the last February with one of your employers, you need to file it by the end of May
3. Any correction
You can file again if you filed wrongly or missed some deductible items for the salary income on the last February without any penalty.
a. Last year I earned a less income than this year but paid more tax, why?
For first year, NTS gave you some 60% expense, so your tax basis may around 40% only.
Once your income was more than 24Mil.won in the last year, NTS gave you a 30% expense, so your tax basis will be up to the 70% of your income.
b. For freelance's income, once if withheld 3.3% by the employer, my tax liability is done, isn't it?
Absolutely not, you guys filed once a year in your country and same here.
c. I got a tax bill from the NTS without any advance notice, even adding a fine and penalty, is it fair?
This is embarrassing since NTS can't update your resident address timely, so always being like a Monday morning quarterback!
You can appeal that if you didn't get the tax bill by the registered post mail, once you got the post mail, you can file it in a month with your tax agency.
Please let me know if you had any questions to firstname.lastname@example.org