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In order to ensure the adequacy of tax returns for income received through overseas financial accounts on the 5th, and to improve the transparency of tax returns, Rep. Kyung-Sook Yang (Democratic Party) of the Planning and Finance Committee has been responsible for a person whose sum of’deposit’ exceeds 500 million won on the 5th. It proposed the “Partial Amendment of the International Tax Adjustment Act” that requires reporting obligations.
YouTubers are currently required to report voluntarily, but they are obligated to report in the future.
With the development of the 4th industrial revolution and the non-face-to-face wind blown by Corona 19, the form of income of a new paradigm that directly receives profits from foreign companies without domestic or foreign borders such as e-commerce and single media creators is increasing.
However, due to inadequate international tax treaties or regulations, the tax authorities may not be able to guarantee the appropriateness of tax returns or impose any other taxation methods on foreign income received through overseas financial accounts.
In addition, there are cases of intentionally avoiding the obligation to report overseas financial accounts by adjusting the holding balance below the reporting standard in accordance with the current reporting standard,’one day of the end of each month of the year’.
In the past, YouTubers were classified as other self-employed, so the taxation code was newly established by the National Tax Service, but it is still difficult for the tax authorities to determine the profits unless individual YouTubers voluntarily report. In addition, the necessity of improving the transparency of tax reporting continues to be raised.
Rep. Yang Gyeong-sook specified the reporting clause specified as a person whose account balance for’one day of the end of each month of the year’ exceeds the amount set by Presidential Decree (500 million won) as a person whose sum of’deposited in the current year’ exceeds 500 million won. It was revised and proposed the “Partial Amendment of the International Tax Adjustment Act,” which imposes a fine for negligence if not implemented.
According to the data on the percentile of income for one-person media creators (youtubers, etc.) in 2019, which was submitted to the National Tax Service in February by Rep. Yang Kyung-sook, the total amount of income was 87.71 billion won, which was earned annually by 27 high-ranking 1% importers. The total income was 18.125 billion won, and the average income was 671 million won, showing that it secured high profits.
Rep. Yang said, “We have imposed a clear reporting obligation on those subject to taxation who obtain income through transactions with overseas companies, and formulated a bill to improve transparency in reporting.” “Based on the principle of taxation where there is income, overseas We will prevent tax evasion on source income and secure transparency in tax reporting.”
The lawmakers who participated in the joint proposal of the 「International Tax Adjustment Act Partial Amendment Act」 were Kim Young-ho, Nam In-soon, Jeong Seong-ho, Hwang Unha, Choi Jong-yoon, Ahn Min-seok, Lee Seong-man, Lim Ho-sun, and Kim Seung-won.