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Steps to Register a Sole Proprietorship in Korea for YouTubers:


Determine Your Business Type:

  • If you have physical or human resources (such as a studio or hired personnel), you will need to register as a VAT taxable business in the “media content creation industry(Business code: 921505).”

  • If you work without physical or human resources, you can register as a VAT tax-exempt business under the category of a one-person media content creator(Business code: 940306).


  • Register Your Business:

    • You must register your business within 20 days of starting your YouTube channel (or before starting if you want to register early).

    • This can be done online through the National Tax Service’s Hometax system or by visiting your local tax office.

  • Required Documents for Business Registration:

    • A business registration application form.

    • Lease contract for your business location (if applicable).

    • A copy of your identification (passport or ID card).

    • If applicable, you may need additional certifications such as a tourism business registration certificate if your content falls under certain categories like tourism.

  • Choose a Tax Category:

    • You can either register as a general VAT taxpayer or a simplified VAT taxpayer (for annual revenue below ₩80 million).

    • If you're a tax-exempt sole proprietor (without significant facilities or employees), you must submit an annual report of your income by February 10 of the following year.

  • Tax Obligations:

    • All revenue streams, including Google AdSense payments, Super Chat, sponsorships, and membership payments, must be declared as income.

    • If you receive foreign income (like payments from YouTube, which might be taxed in the U.S.), you can apply for foreign tax credits to avoid double taxation.

  • Cash Receipt Issuance:

    • If you sell any goods or offer services directly via social media (SNS Market), you may need to issue cash receipts for transactions over ₩100,000 if requested.


By registering as a sole proprietor, you comply with Korean tax law, ensuring that you can legally operate and take advantage of tax benefits, such as deductions for business-related expenses.


FAQs:

  1. Do I need to register my YouTube channel as a business?

    • Yes, if you are generating income from your channel, you are required to register as a sole proprietor within 20 days of starting operations.

  2. What tax category should I choose as a YouTuber?

    • It depends on whether you have employees or physical facilities. With facilities or employees, you would register as a taxable business. Without these, you can register as a tax-exempt sole proprietor.

  3. Do I need to report income from Super Chat and Google AdSense?

    • Yes, all income from YouTube activities, including Super Chat, AdSense, and other earnings, must be reported.

  4. How do I handle foreign taxes deducted by Google?

    • You can apply for a foreign tax credit when filing your annual income tax to avoid double taxation on income earned from foreign platforms like YouTube.

  5. What documents do I need to register a YouTube business in Korea?

    • You need a business registration form, lease contract (if applicable), and your ID.


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since 1981-

Korean Tax Blog

Joseph SY Zoh

CPA, California, a member of AICPA  |  Jz Tax Accounting /Jz Associates

F:+82-31-273-5078  |  Skype: joezoh  |  Email: jz@taxjz.com

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