VAT exempt private business owners must report by the 10th of the following month

The National Tax Service announced on the 19th that it will receive reports on income and business status in 2020 by the 10th of the following month for individual businesses exempt from VAT, such as housing rental businesses, hospitals, clinics, and academies.

You can file a report using Hometax, the website of the National Tax Service, and Sontax, a mobile application. Due to the spread of the new coronavirus infection (Corona 19), the face-to-face report window will not be operated this year.

As the National Tax Service does not operate a face-to-face window, it has been supplemented to make non-face-to-face reporting easier. First of all, it was targeted to make it possible to use mobile reporting, which was only available for’non-performing reporting’ last year, even if there is a business record. However, businesses that have many items on the income review table, such as medical and housing rental businesses, are excluded. Housing rental business owners can submit a simple declaration form the same as in the previous year.

If it is difficult to report electronically, you can obtain a written report from the National Tax Service website, fill out it, and submit it by mail. Please note that only those with a postmark of February 10th are accepted.

If you are a housing rental business, you are subject to taxation for rent from 2 or more houses and deposits from 3 or more. The deposit is taxed as the deemed rental fee. The interest rate for term deposits applied when calculating the deemed rent fell to 1.8% (2.1% in 2019). In addition, if the base time is over 900 million won or rental income for a house located abroad, one homeowner must also pay taxes.

As for the taxation method, if the income amount is less than 20 million won, you can choose between comprehensive taxation and separate taxation, and if it exceeds 20 million won, it is classified as comprehensive taxation. The number of homes you own should be calculated by adding up the couple. In addition, even if you have a minority stake in publicly owned housing, if your annual income is more than 6 million won or if you put 30% of the housing share above 900 million won, it is included in the number of houses.

Medical, veterinary, and pharmaceutical businesses may incur additional tax (0.5% of the import amount) if they do not report the amount of income or report less.

An official from the National Tax Service said, “If you report the status of your business, you can use simple reporting services such as’filling the report in advance,”information on bookkeeping obligations and expenses rate’ when filing a comprehensive income tax in May.” We plan to verify whether or not we report underreporting.”

Sejong = Reporter Kim Namjun [email protected]