1.49 Million Duty-Free Businesses to Report Business Site Status by the 10th of Next Month

[Sejong=Asia Economy Reporter Kim Hyun-jung] Among business operators running housing rental businesses, clinics, and academies, 1.49 million VAT-exempt business operators must report their '2021 attributable income' and business status to the National Tax Service by the 10th of next month.

On the 18th, the National Tax Service announced that it will send notification letters starting from the 19th to 1.49 million individual business operators exempt from VAT, such as clinics and housing rental businesses, who are obligated to report their '2021 attributable income.' For those under 60 years old, notifications will be sent via mobile, and for those 60 and older, written notifications will be the principle. The reporting targets are individual business operators exempt from VAT, including housing rental businesses, clinics, academies, wholesale and retail of agricultural and marine products, flower shops, and bookstores.

Information on income reporting status for the past three years, issuance data of electronic (tax) invoices, credit cards, and cash receipts are provided through the 'Report Assistance Service' on Hometax and Sontax. In particular, for housing rental business operators, Hometax provides data on rental housing reports for the previous year (2020 attributable) and housing ownership details for 2021.

The National Tax Service will reflect this business status report content to offer a simplified reporting service during the comprehensive income tax filing for 2021 attributable income in May this year.

Taxpayers must pay attention to tax law amendments when filing. The interest rate applied to calculate deemed rent on deposits for housing rental business operators has been lowered from the previous 1.8% to 1.2%. When counting the number of houses, even minority co-owners of jointly owned houses are added to the house count if the annual income generated from the house is 6 million KRW or more, or if the share of a house with a standard market price exceeding 900 million KRW exceeds 30%.

Those with business income of 48 million KRW or more in the previous tax period who fail to submit the (tax) invoice summary or submit false information will also be subject to additional tax (0.5% of the supply value).

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