Request to Google for YouTuber Income Payment Data... Calls for Response to New Industries and Payment Methods

2021 National Tax Administration Forum Held

[Sejong=Asia Economy Reporter Kim Hyun-jung] There have been calls for active responses to new industries and payment methods, such as requesting income-related data paid by overseas-based media platforms like Google through tax treaties for taxation of one-person media creators, including YouTubers.

On the 2nd, Kim Bitmaro, Director of the Tax and Fiscal Outlook Center at the Korea Institute of Public Finance, announced this at the '2021 National Tax Administration Forum,' jointly hosted by the National Tax Administration Reform Committee and the Korea Institute of Public Finance and sponsored by the National Tax Service, under the theme 'Establishing a Foundation for Prompt Response to New Industries and Payment Methods.'

Director Kim stated, "From the perspective of tax authorities, it is necessary to find ways to collect income-related information paid by overseas-based media platforms such as Google to one-person media creators," adding, "Rather than directly imposing withholding tax obligations on overseas-based media platforms, it is preferable to consider regularly requesting necessary information through information exchange provisions in tax treaties." He further added, "It is also possible to consider regulations requiring one-person media creators to report additional information to tax authorities to apply zero tax rates."

In the case of YouTubers, since they can be seen as supplying 'foreign currency earning services,' submitting a foreign currency deposit certificate makes them eligible for zero tax rates, and it is proposed to include detailed information in the attached documents for zero tax rate application.

Regarding SNS markets, Director Kim analyzed, "Considering that most SNS commerce is currently concentrated on a few platforms such as Instagram and Naver, attracting sellers active on these platforms to the platforms' own official markets would have a significant effect on tax authorities' tax base management." He also suggested, "As part of policies to induce users to trade in official markets, it may be possible to consider granting them temporary tax benefits."

Additionally, Associate Professor Jeong Seung-young of Changwon University emphasized the need for regulations to counter concealment and criminal activities through the dark web and cooperation on virtual asset-related information. Research Fellow Choi In-hyuk and Team Leader Jeong Hoon of the Korea Institute of Public Finance proposed measures to improve the timeliness and accuracy of income identification, such as imposing monthly submission obligations of simplified payment statements on withholding agents of wage earners.

This content was produced with the assistance of AI translation services.