Let me just start by saying that this topic is a HOT MESS. It may be because it is tax related that I automatically had a predetermined attitude that this would be a complicated form to complete, but the 16 page set of directions that go along with it seem to justify my confusion and frustration.
So after I passed my EPIK interview I received an email from my recruiter telling me that I need to apply for a residency certificate to avoid double taxation.
This is only applicable to teachers from Australia, New Zealand, South Africa, United Kingdom and United States. Candidates from Canada and Ireland and those who resided in Korea for more than 2 years are NOT applicable. For those who cannot apply for this income tax exemption, your income tax (3.3%) will be deducted from your salary. By submitting your residency certificate to your school(employer) in Korea, you will prevent about at least ₩800,000 (per year) of income tax in Korea per year being deducted.
- US Citizens – IRS Official Website | Form 6166 – Certification of U.S Tax Residency
- UK Citizens – HMRC Official Website | Tax on Foreign Income
- SA Citizens – SARS Official Website | Tax & Immigration
- AUS Citizens – ATO Official Website | International Tax for Individuals
- NZ Citizens – IRD Official Website | Tax Residency and Status
US applicants should request a – Certification of US Tax Residency. The Internal Revenue Service (IRS) procedure for requesting a certificate of residency (Form 6166) from the Philadelphia Accounts Management Center is the submission of Form 8802, Application for United States Residency Certification (PDF). Use of the Form 8802 is mandatory.
Much of what you place on the application will be dependent on what intake you are going with and your tax background. The one point I can speak on in a universal sense is the payment and penalties of perjury statement.
I paid the 85 dollar fee via epayment and requested 3 certifications. I went with this option in part because I feel like if your payment is already submitted you can avoid a minimal delay if they wait for your payment in the form of a check to clear. In other words, I feel like the epayment puts you a step ahead. Maybe not. Just my thoughts.
Perjury Statement- “This certification is given under penalties of perjury and to the best of my knowledge and belief, the statements are true, correct, and complete. YOUR FULL NAME (YOUR TAX #) was a U.S. resident within the meaning of Article 4 of the U.S.-Korea treaty (including, in some cases, physical presence in the United States) immediately before entering Korea. The assignment began on DATE and ends on DATE. Article 20 of the U.S.-Korea treaty provides a 2 year exemption from income tax.”
I went ahead and estimated the “DATE” portions seeing as I have yet to receive anything about possible orientation/arrival dates.
Line 7 Calendar year(s) for which certification is requested – Indicate that you are applying for the year in which you will be ARRIVING in Korea. For example, if you are arriving in August, do NOT apply for the coming new year, but instead just go ahead and apply for the current year.
Line 8 8 Tax period(s) on which certification will be based – This may get tricky but stay with me! If you are requesting certification for a tax period for which a tax return is not yet due, enter the four-digit year and two-digit month (YYYYMM) that corresponds to the latest return required to have been filed (including extensions). To apply for 2016, I put 201512 in this box because I have filed my 2015 income taxes.
Once you have signed everything and looked it over one last time, seal it up and send it via mail with a tracking number. There are several mailing addresses, so make sure you sent your application to the corresponding location applicable to you!
This process is known to take around 45 days. There are no channelers for this certification so get on it A👏S👏A👏P👏!
Ad astra per aspera,
Timeline (24 days)
- 4/25 – Mailed to Dept of treasury via USPS 2 day priority mail
- 4/27 – Arrived at Dept of treasury
- 5/19 – Received certifications via USPS