V niche post about taxes for creators in South Korea, becasue i never know who reads this

This is how taxpayer year cycle in a looks like in South Korea

It begins in January when you document all your income from various sources, maintaining detailed records of any funds deposited into your bank account. Along the way, you also keep a separate list of potential expenses that may be utilized for tax deductions.

Typically, in most cases, taxes are withheld by employers. Then, you file a summary of your income on the Hometax website before May of the following year to receive tax refunds.

However, if you earn income from online platforms like YouTube, you are required to self-report that income. This operates within a progressive tax system, meaning that the more you earn, the higher the percentage you pay (ranging from 6% to 45%).

This self-reporting is included in the same tax return document that, as we have noted, starts on January 1st and can be submitted before May of the following year. The key difference, as I understand it, is that instead of receiving a refund, you would pay the taxes that would normally be withheld before reaching your bank account in typical scenarios.

And guys on reddit corrected me:

Along the way, you also keep a separate list of potential expenses that may be utilized for tax deductions. Most of it is automatically managed by hometax specially for personnel expenses such as credit card use. Then, you file a summary of your income on the Hometax website before May of the following year to receive tax refunds. Your employer normally files first, and you get your refund in your February or March paycheck. Smaller employers might do it differently. May is when you do 종합소득세 Combined income tax, capital gain, rent etc all combined. However, if you earn income from online platforms like YouTube, you are required to self-report that income. This operates within a progressive tax system, meaning that the more you earn, the higher the percentage you pay (ranging from 6% to 45%). Tax rates depend on the type of income. As you mentioned, if you are doing YouTube on your own, the code is 940306 and you do not have to pay VAT. However, if you have employees, this changes. You can also assign a credit card for business expenses, so it is important that you distinguish between your personal use when you do your 연말정산 with your employer and your business use to minimize tax, as you obviously cannot ask for a deduction twice. Note that depending on your other income, you might be asked to pay additional NHIS contributions. So keeping your May income low or close to 0 should be the goal.