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YouTubers who regularly earn income from advertising, sponsorships, or viewer contributions must file taxes. VAT-exempt businesses must also file comprehensive income tax returns. The amount they actually pay depends on deductible business expenses and tax deductions. Whether they have employees and facilities determines their business classification.
The simplified VAT threshold follows the standard revised in July 2024, and the filing dates follow National Tax Service guidance for the 2025 tax year.
What YouTuber income must be reported?
Income earned repeatedly from video activities for profit is business income. It is wrong to assume that only advertising income must be reported. Contributions that viewers send to a personal bank account in connection with broadcasts are also included. The National Tax Service says this income must be reported on a comprehensive income tax return. National Tax Service guidance on comprehensive income tax filing
| Type of income | Records to check |
|---|---|
| YouTube advertising income | Platform earnings and payment statements |
| Corporate sponsorships and fees for promotional videos | Contracts and settlement statements |
| Platform contributions and contributions to personal bank accounts | Contribution records and bank account transactions |
| Income from events, lectures, and other activities | Payment statements and contract terms |
The National Tax Service identifies advertising, contributions, corporate promotions, and events as types of creator income. However, one-off activities may be classified differently. If it is difficult to determine whether an activity is an ongoing business, organize your activity records and check. National Tax Service overview of solo media creators
Do employees and minors also have to file?
People with regular jobs should also check whether they need to file a comprehensive income tax return if they earn recurring income from videos. Their employer's year-end tax settlement does not cover video business income. A comprehensive income tax return also reflects employment income that must be combined with other income. National Tax Service overview of comprehensive income tax
Being a minor does not, by itself, exempt taxable income. If family members run a channel together, however, they must determine to whom the income actually belongs. If the person appearing on the channel, the person signing contracts, and the person receiving the income are different, check with the tax office responsible for your area.
Google’s US tax withholding does not replace reporting income in South Korea.
Business registration and taxable versus exempt status
If you earn income from videos on an ongoing, recurring basis, you must register as a business. Registration is not a procedure you choose only when it offers tax savings. Whether a business is taxable or exempt is determined by its actual employment arrangements and business facilities.
The National Tax Service's “Tax Guide for Solo Media Creators” states:
Both taxable and exempt businesses must file comprehensive income tax returns.
| Classification | Criteria | Industry code | Basic filings |
|---|---|---|---|
| Media content creation business | Employs staff or has physical facilities for business use | 921505 | VAT and comprehensive income tax |
| Solo media content creator | Has neither employees nor physical facilities for business use | 940306 | Business premises status report and comprehensive income tax |
Running a channel alone does not automatically make you a VAT-exempt business. The National Tax Service gives professional filming equipment and a separate studio as examples of physical facilities. If it is unclear whether facilities are used exclusively for business, check before registering. National Tax Service tax guide for solo media creators
How is simplified VAT taxation different from exemption?
Simplified VAT taxation simplifies how VAT is calculated. Exemption means VAT does not apply to the services in question. The two systems differ starting with the criteria used to determine eligibility.
The general threshold for simplified VAT taxation is less than 80 million won in the previous year's sales, including VAT. The threshold was expanded in July 2024, so you should not simply apply the previous 80 million won threshold. National Tax Service guidance on changes to simplified VAT taxation
| Classification | What to check | Exempt from comprehensive income tax? |
|---|---|---|
| VAT-exempt business | Type of services provided and requirements concerning personnel and physical facilities | No |
| Simplified VAT taxpayer | Sales threshold and exclusions from simplified VAT taxation | No |
| General VAT taxpayer | VAT classification, including eligibility for simplified VAT taxation | No |
Even if sales meet the threshold, simplified VAT taxation may be unavailable because of the type of business or other factors. Check your business registration to see which classification applies. You can also check the eligibility requirements in the National Tax Service's VAT guidance. National Tax Service overview of VAT
Zero rating for overseas advertising income
Overseas advertising income may qualify for zero-rated VAT if it meets the requirements. Zero rating applies a VAT rate of 0%. Unlike an exemption, it is a taxable transaction, so filing and supporting documentation are required. Do not treat domestic sponsorship income the same way. National Tax Service VAT guidance for creators
How much tax do YouTubers pay?
Monthly income alone cannot determine the final comprehensive income tax amount. Business income is calculated by subtracting deductible business expenses from gross income. Other income that must be combined with it, along with deductions, is then taken into account. This is why people with the same sales can owe different amounts.
When filing based on accounting records, the basic calculation follows these steps:
- Add together business income from advertising, sponsorships, contributions, and other sources.
- Subtract allowable business expenses to calculate business income.
- Account for other income that must be combined with it and for income deductions.
- Apply the tax rate, then account for tax credits and taxes already paid.
Deductible business expenses are costs incurred for the business. Accounting records of income and expenses provide the basis for the calculation. The type of records required depends on factors such as the type of business and income level. National Tax Service guidance on accounting records and foreign tax credits
Are all video production costs deductible?
You cannot report personal living expenses as video production costs. For meals or purchased items, check whether the expense was actually related to the business. Keep receipts and record what the expenses were for. National Tax Service response concerning business owners' meal expenses
- Editing and production service fees: Check contracts and proof of payment
- Filming location rental: Check the lease and records of business use
- Equipment purchases: Check whether the equipment is used for business and how the cost should be recorded
- Expenses with both personal and business use: Separate the business-related portion
High expenses alone do not create a tax refund. A refund arises if taxes already paid exceed the final tax assessed. Business income subject to 3.3% withholding in Korea must also be included in the final calculation. National Tax Service guidance on prefilled tax returns
