The appearance of the YouTube app. yunhap news
The tax imposition on YouTubers, who earn hundreds of millions of dollars in income, will be strengthened.
On the 5th, Rep. Kyung-Sook Yang of the Planning and Finance Committee (and the Democratic Party of Korea) proposed the’Amendment of the Act on International Tax Adjustment Act’.
According to the revised bill, it is required to make a reporting obligation for those with a sum of’deposited amount’ exceeding 500 million won to ensure the adequacy of tax returns for income received through overseas financial accounts and to enhance the transparency of tax returns. .
It is interpreted to be aimed at YouTubers who earn a large amount of income. Currently, YouTubers are obliged to report voluntarily, but in the future, they are obligated to do so.
Congressman Yang said, “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, such as e-commerce, single media creators, etc., is increasing.” However, due to inadequate international tax treaties or laws and regulations, tax authorities may not guarantee the adequacy of tax returns or impose any other taxation method on foreign income received through overseas financial accounts,” he explained the purpose of the bill.
According to the data on the percentile of income for single media creators (youtubers, etc.) in 2019, which was submitted to the National Tax Service in February, the total amount of income was 871 billion won, which was earned by the top 1% of the 27 high importers annually. It was found that the total income was 18.125 billion won, and the average income amounted to 671 million won.
There are many high-income YouTubers, but until now, YouTubers have been classified as other self-employed, so the exact income could not be determined. Although the National Tax Service created a new tax code, it was still difficult for the tax authorities to determine the profits unless individual YouTubers voluntarily report it.
For this reason, the necessity of improving the transparency of tax reporting for YouTubers and the like has been continuously raised.
Accordingly, both members of the lawmakers are required to comply with the reporting provisions stated as a person whose account balance on’one day of the end of each month of the year’ exceeds the amount set by Presidential Decree (500 million won). Amendments were made in detail, and a’Partial Amendment of the International Tax Adjustment Act’ was proposed, which imposes a fine for negligence if not implemented.
Rep. Yang said, “Based on the principle of taxation where there is income, we will prevent tax evasion on foreign source income and ensure transparency in tax reporting.”