The names of foreign players who left Korea three or four years later became a hot topic again. It’s not a pleasant thing.
On the 15th, the National Tax Service released a list of 6,940 habitual tax delinquents who have paid over 200 million won in national taxes for more than a year on its website. Former KBO League players such as Yoon Seong-hwan were also included on this list. Eight foreign players, including Darin Ruff, were included.
These 8 people have something in common. All of them played in the KBO League around 2018. There are 3 players who played until 2017, 4 players who spent 2018 in Korea, and 1 player who played until 2019.
2018 was a time when there was a big change in the real income of foreign players.
Previously, foreign players in the KBO League knew that they had fulfilled their tax obligations if they paid 22% of their income as a withholding tax. However, with the revision of the Enforcement Decree of the Income Tax Act in December 2014, even foreigners who are classified as “residents” who stay in Korea for 183 days or more per year are required to file a comprehensive income tax report in May.
The changed law began to apply in 2015, but KBO League clubs and foreign players only learned about this fact in March 2018. It started to become known when each local tax office announced this fact to 10 clubs that were obliged to withhold tax.
Most of the foreign players who played in the KBO league at this time became delinquents without even realizing it. It is highly likely that the three players (Anthony Lenado, Xavier Scruggs, and Jeff Manship) who only played until 2017 heard this news in the United States, not Korea.
The rest of the players have something to say. The key is whether the player in question is classified as a resident. If not, he is not required to file a comprehensive income tax return. However, the standards for judging residents were different, so the players were confused. For example, in former SK, coach Trey Hillman and Jamie Romack were classified as non-residents, and Merrill Kelly was classified as a resident.
In this National Tax Service announcement, an official from a club whose past players were classified as delinquents said, “The club also notified the players to solve this problem. However, each case is different, so it is difficult to determine which player was classified as a delinquent for what reason. ” he was annoyed.
Players who have played since 2018 are often in difficult situations. In the case of former KIA Hector Noesi, he has been playing in Korea since 2016 and has additional income such as winning bonuses in 2017. It is likely that the highest tax rate was applied because the ransom was expensive, so the tax burden more than doubled. In addition, since he is from the Dominican Republic, which does not have a tax treaty with Korea, he may have to pay taxes again after returning to Korea.
American players with tax treaties are also dissatisfied. Unlike other foreign players and coaching staff, Kelly, who was classified as a domestic resident and had an increased tax burden, expressed dissatisfaction in an interview with the American media after entering the major leagues in 2019.
At the time, the KBO explained that it made sure to give advance notice of the impact of the amendment to the Enforcement Decree of the Income Tax Act and individual tax obligations. She also said there are refund procedures in place to prevent double taxation for athletes who are nationals of countries that have tax treaties with South Korea, such as the United States.스포츠토토
There are cases where, like Henry Sosa and Jared Hoying, they paid their taxes in arrears after returning to the KBO league. They spent most of their income after returning to Korea as substitute players to pay taxes. First of all, even if you pay taxes, it is a case where you expect income after extending your active service and renewing your contract. The players below can also take off the delinquent tag if they return to Korea and report their past income and pay taxes.
◎Former foreign players included in the list of high delinquents