💡 Do YouTubers need to register as business operators? What taxes do they have to pay?
YouTubers can be divided into two categories: general YouTubers and MCN-affiliated YouTubers.
You can think of BJs on platforms like AfreecaTV as similar to MCN-affiliated YouTubers.
Unlike general YouTubers, who have to consider registering as business operators, BJs and MCN-affiliated YouTubers don't need to register because the amount (income) settled by the company is treated as labor costs.
This is what is commonly referred to as "business income subject to 3.3% tax".
General YouTubers
| BJ or MCN-affiliated YouTubers |
| Must register as business operator | No obligation to register as business operator |
Taxable business operators file VAT returns;
tax-exempt business operators file business place status reports | No need to file VAT or business place status reports |
| Report comprehensive income tax on income earned |
Are YouTubers taxable business operators? Tax-exempt business operators?
💡 How do YouTubers report value-added tax?
YouTubers who are not affiliated with MCNs receive YouTube revenue deposited into their bank accounts in dollars via Google AdSense.
In this case, they are subject to the reduced tax rate for "foreign currency acquisition businesses".
Unlike typical taxable business operators, who apply a tax rate of 10% when reporting value-added tax, YouTubers calculate sales tax by multiplying their sales revenue by 0%.
YouTubers' value-added tax = Sales revenue x 0% - Purchase amount x 10%
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When you substitute the above formula, the sales tax is 0 KRW, and only the purchase tax is generated, so YouTubers receive a refund of value-added tax.
💡 Is sponsorship income also considered income?
If YouTubers publicly disclose their personal bank account and receive money, it can be considered as a gift. You should be careful, especially if you receive sponsorship of more than 500,000 KRW per sponsor, as a gift tax may be incurred.
💡 How can creators reduce their taxes?
It is most important and effective to keep receipts and receive the maximum possible deduction of purchase tax.
When paying remuneration to photographers, editors, or guests who appear on broadcasts, withholding tax and reporting of labor costs must be done.
In addition, it is a good idea to familiarize yourself with the following pension deductions:
- Pension insurance premium deduction:
Full amount of National Pension contributions. - Individual pension savings deduction:
40% deduction of individual pension savings amount (only for those who joined before December 31, 2000). - Small business and small business owner contribution deduction:
Deduction of National Pension contributions under the Yellow Umbrella program (income deduction limit varies depending on business income).
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🚨 Depositing income into another person's account or arbitrarily not reporting some income is considered tax evasion.
Remember that the National Tax Service is increasingly monitoring the use of anonymous accounts and omission of income!
Understanding tax filing for bloggers
💡 Do YouTubers need to register as business operators? What taxes do they have to pay?
YouTubers can be divided into two categories: general YouTubers and MCN-affiliated YouTubers.
You can think of BJs on platforms like AfreecaTV as similar to MCN-affiliated YouTubers.
Unlike general YouTubers, who have to consider registering as business operators, BJs and MCN-affiliated YouTubers don't need to register because the amount (income) settled by the company is treated as labor costs.
This is what is commonly referred to as "business income subject to 3.3% tax".
tax-exempt business operators file business place status reports
Are YouTubers taxable business operators? Tax-exempt business operators?
💡 How do YouTubers report value-added tax?
YouTubers who are not affiliated with MCNs receive YouTube revenue deposited into their bank accounts in dollars via Google AdSense.
In this case, they are subject to the reduced tax rate for "foreign currency acquisition businesses".
Unlike typical taxable business operators, who apply a tax rate of 10% when reporting value-added tax, YouTubers calculate sales tax by multiplying their sales revenue by 0%.
When you substitute the above formula, the sales tax is 0 KRW, and only the purchase tax is generated, so YouTubers receive a refund of value-added tax.
💡 Is sponsorship income also considered income?
If YouTubers publicly disclose their personal bank account and receive money, it can be considered as a gift. You should be careful, especially if you receive sponsorship of more than 500,000 KRW per sponsor, as a gift tax may be incurred.
💡 How can creators reduce their taxes?
It is most important and effective to keep receipts and receive the maximum possible deduction of purchase tax.
When paying remuneration to photographers, editors, or guests who appear on broadcasts, withholding tax and reporting of labor costs must be done.
In addition, it is a good idea to familiarize yourself with the following pension deductions:
Full amount of National Pension contributions.
40% deduction of individual pension savings amount (only for those who joined before December 31, 2000).
Deduction of National Pension contributions under the Yellow Umbrella program (income deduction limit varies depending on business income).
🚨 Depositing income into another person's account or arbitrarily not reporting some income is considered tax evasion.
Remember that the National Tax Service is increasingly monitoring the use of anonymous accounts and omission of income!
Understanding tax filing for bloggers