Korea has both national and local taxes.
Unlike America, Korea does not pay tax seperately when buying an item. It is already included in the price. Value added tax is 10%.
Also, there is no "tip" system.
Income tax of Republic of Korea is progressive.
Korea has a progressive tax rate, which in 2009 was as follows:
o Earnings up to W12million Tax Rate is
6%
o Earnings from W12 million to W46 million Tax Rate is
16%
o Earnings from W46 million to W88 million Tax Rate is
25%
o Earnings over W88 million
Tax Rate is 35%
For foreign employees:
An individual who is a resident of a contracting State, and who at the
invitation of any university, college, or other recognized educational
institution, visits the other contracting State for a period not exceeding two
years solely for the purpose of teaching, or research or both at such
educational institution shall be taxable only in the first mentioned State on
his remuneration for such teaching or research.
The religious groups do not pay the tax. I personally believes that this is malicious practise because money corrupts them. The churchs bought so many unnecessary buildings that South Korea is literally covered by the Red cross. In fact, majority of Koreans do not have a religion. The religions have so much power in economy and politics. Buddihists started to eat meat, enjoy sex and is corrupted. Also, South Korea has numerous newly born religions. I believe that Church and the State must be seperated.
