How to register a business with the National Tax Service (NTS) as a YouTuber in Korea.

Introduction

Are you an expat YouTuber in Korea, trying to navigate the complex world of taxes? You’re not alone! Whether you’re earning from ad revenue, sponsored content, or fan donations, knowing how to register your business with the National Tax Service (NTS) is crucial to staying compliant and avoiding fines. In this guide, we’ll walk you through how to register your business, explain Value Added Tax (VAT), and clarify if registering as a sole proprietorship is necessary. Let’s get started!

1. What is Value Added Tax (VAT)?

VAT is a tax that is added to the value of goods and services at each stage of production or distribution. In Korea, businesses that make over KRW 48 million annually must register for VAT, which is currently set at 10%. This applies to YouTubers as well. Even if your YouTube channel is primarily for personal enjoyment, if you’re earning income from it, you are likely considered a business in the eyes of the NTS.

So, how does this work? You need to report and pay VAT every six months if you’re classified as a general taxpayer or annually if you’re under simplified taxation. Understanding your VAT obligations early helps you manage your finances better and avoid hefty penalties.

2. Do YouTubers Need to Register Sole Proprietorship to File VAT?

Yes, if you’re earning an income as a YouTuber, you’ll need to register as a sole proprietor. There are 2 type of business code, a. General taxpayer who hired a staff and some investment(code no.: 921505) and b. Vat exempted tax payer who is a Oneman soleproprietor (Code No.: 940306). Whether you’re making money from ads, sponsored content, or super chats, it’s all considered taxable income. You may be classified as a "media content creator," and your tax obligations are based on the size of your earnings.

But how do you know if this applies to you? Simple: If you earn over KRW 80 million annually, you must register for VAT as a general taxpayer. Even if your income is lower, registering as a sole proprietor is often necessary for proper tax reporting. This ensures that all your earnings are appropriately reported and taxed.

3. Three Easy Ways to Register a Sole Proprietorship in Korea

Starting a YouTube channel is easy, but registering it as a business? That’s where things get tricky. Thankfully, the NTS offers three simple ways to register your sole proprietorship:

1. Visit the NTS Office: You can go directly to your local tax office with the required documents (ID, lease agreement, etc.) and register in person. This is often the quickest option, especially if you have all your paperwork ready.

2. Use Hometax: The NTS’s online portal, Hometax, allows you to register your business from the comfort of your home. All you need to do is create an account, upload your documents, and follow the prompts to complete your registration.

3. Seek Professional Help: If you’re not comfortable handling the paperwork yourself, you can hire an accountant or a tax service provider. They’ll make sure your business is registered correctly and advise you on any additional steps you might need to take.

Conclusion

Registering your YouTube channel as a business in Korea may seem like a hassle, but it’s an essential part of staying compliant with tax laws. By understanding VAT, knowing when you need to register as a sole proprietor, and exploring the easiest ways to do so, you’ll be better prepared to focus on what you do best—creating content!

If you’re an expat YouTuber who needs help navigating the Korean tax system, feel free to reach out for more advice. Let’s make sure your business is set up for success!