Classifying the payment from Lecturing(Teaching)

Welcome !

If you are teaching english or the other language in Korea your income might be classified 

as wage income or business income.

Let's check about it.

A) With the employment contract, it will be wage income

-> If you are an employee, your employer will withhold the monthly income by the table. Unless you don't have other income, your tax liability will be finalized in Feb as year-end settlement

 

B) If working as a independent contractor known as free-lancer, it will be business income (3.3%)

-> If you are working as a Free-lancer withholding 3.3%, you will be responsible for filing global income tax return in May. And the amount of withhold(3%) will be credited as prepaid tax. But if your income goes higher you might need to make a F/S for reducing your tax

So, check up what type of income you are

And Remember...the best way to reduce your income tax is, prepare as much as receipt as you can :)