Value Added Tax & Comprehensive Income Tax Filing Guide

Title: Value-Added Tax & Comprehensive Income Tax Filing Guide Body HTML:

We expect there may be vague difficulties regarding how to file value-added tax and comprehensive income tax!
MyRealTrip would like to provide guidance on tax filing to resolve our partners' concerns.

1️⃣ Tax Filing Guide

[1] Value-Added Tax

[2] Comprehensive Income Tax

[3] Tax Filing/Payment Methods

2️⃣ Settlement Transfer History Verification

3️⃣ MyRealTrip VAT Filing Changes

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1️⃣ Tax Filing Guide

[1] Value-Added Tax

Why do you need to pay value-added tax? [Value-Added Tax Act Article 3]

• Tax paid on the added value generated when businesses sell goods or provide services

• This tax is actually borne by the final consumer

• It is the business's obligation to pay the value-added tax paid by the final consumer during the filing and payment period

General Taxpayer vs Simple Taxpayer vs Tax-Exempt Business [Value-Added Tax Act Article 5]

• VAT Payment Eligibility Criteria

• General Taxpayer

  • General taxation:When previous year's revenue exceeds 80 million won

  • Filing Period

    • Payment twice per year

    • 1st tax period: January 1 to June 30, filing/payment period: July 1 to July 25

    • 2nd tax period: July 1 to December 31, filing/payment period: January 1 to January 25 of the following year

  • Tax Rate Determination

    • Tax rate is 10%

• Simple Taxpayer

  • Simple taxation: A system created for small-scale businesses to enable simpler and easier tax filing, payment once per year

  • Filing Period

    • Tax period: January 1 to December 31, filing/payment period: January 1 to January 25 of the following year

    • If tax invoices were issued during the provisional assessment period (January 1 to June 30), payment is due July 1-25

  • Tax Rate Determination: Tax rate varies annually, determined between 0.5-3%

• Tax-Exempt Business

  • Characteristics: Businesses that supply goods or services exempt from value-added tax are classified as VAT-exempt businesses

  • Exemption Criteria

    • Cases with specific characteristics or requirements for tax policy purposes

    • Applies to residential, housing rental businesses

    • Only possible for residential rental businesses with permits from the competent district office

  • Tax Status

    • VAT exemption does not mean no taxes are paid.

      If you are a tax-exempt business, you must file and pay comprehensive income tax

Is there a difference in VAT payment methods between accommodation business and rental business?

[2] Comprehensive Income Tax

Why do you need to pay comprehensive income tax? [Income Tax Act Article 70 Sections 1-2]

• Comprehensive income includes interest income, dividend income, pension income, employment income, business income (real estate rental, accommodation business), and other income

• Comprehensive income tax filing subjects include individual business operators (accommodation business) and real estate rental operators

• Anyone who had comprehensive income other than employment income must pay comprehensive income tax.

Comprehensive Income Tax Filing Guide

• Comprehensive income tax filing: Tax paid on income earned by individuals through economic activities over one year, payment once per year

• Filing Period

  • General taxpayers: May 1 to May 31 of the following year

  • Faithful filing confirmation submitters: May 1 to June 30 of the following year

• Required Documents: NTS Comprehensive Income Tax Required Documents

[3] Where do you file taxes?

• Tax Filing Methods

  • File through Hometax (continued on next page) / File through mobile app (Sontax) / Phone ARS simple filing

  • Visit tax office (only for disabled, elderly, or new registrants) / Filing through tax attorney representation

• Tax Payment Methods

  • Hometax electronic payment /Cardrotax payment / Internet Giro payment / In-person payment at banks, post offices, etc.

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Do you need to check settlement details and reservation records for tax filing?

2️⃣ How to Check Settlement Transfer History

🚨 To check and download settlement details, please use PC Chrome browser.
(Access and verification are difficult through mobile and Internet Explorer.)

1) Log in to MyRealTrip → Access [Korean Homestay Partner Page]
2) Among the left categories, click [Settlement], then click [Settlement・Transfer History]
3) Click [Excel Download] on the right

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3️⃣ MyRealTrip VAT Filing Related Changes Notice (Applied from 2022)

Starting from 2022, MyRealTrip will not file VAT for sales allowances.
Accordingly, there are changes in the sales and purchase filing amounts when filing VAT for revenue generated on MyRealTrip compared to before, which we would like to inform you about.

[Sales Filing Amount]
- Previous sales filing amount: MyRealTrip product sales price
- Changed sales filing amount: MyRealTrip product sales price - Sales allowance

[Purchase Filing Amount] (Tax invoice issuance amount)
- Previous purchase filing amount: MyRealTrip commission
- Changed purchase filing amount: MyRealTrip commission - Sales allowance

* Sales allowance: The smaller amount between [commission] and [coupon+points]
* When commission < coupon+points, tax invoices will not be issued.

While the final tax amount remains the same, there are changes in the sales filing amount and purchase filing amount, so please confirm.

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❓ Frequently Asked Questions

Q. What happens if I don't file taxes?

A. If you don't proceed according to the filing and payment deadlines, you cannot receive various tax credits and exemptions, and you will bear additional taxes.

Q. What if you're having difficulties with self-tax filing?

A. Comprehensive income tax: Refer to NTS videos

• Value-added tax: Refer to NTS 5-minute (short form) videos
• For those over 65/new registrants/disabled individuals: Registration available at the competent tax office corresponding to your business address

Q. If I'm operating both accommodation business or individual business and rental business simultaneously, how should I pay VAT?

A. If you're operating both taxable business (accommodation business) and tax-exempt business (residential building rental business) simultaneously, you must file and pay for taxable and tax-exempt portions separately.

Q. How is tax invoice issuance processed?

A. Tax invoices are automatically issued at the end of each month if you apply at least once on the old partner page.

👉 Learn about [Tax Invoice Application]

Q. How do I receive settlement for reservations that haven't been requested for transfer yet?

A. If there are unrequested transfer details among reservations before the system renovation, please refer to the following link. For reservations after the system renovation, weekly automatic settlement is in progress.

👉 Learn about [Transfer Request Methods]

Q. I've checked the above content but want to make an additional inquiry!

A. Please submit your inquiry through KakaoTalk channel or inquiry registration at the bottom!

👉 [KakaoTalk Channel] Direct Link
👉 [Inquiry Registration] Direct Link