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:
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.
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.
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.
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.
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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