From This Year, Additional Tax Imposed for Non-Submission of 'Simple Payment Statement' on Lecture and Consulting Fees

If Submitted Within One Month After the Deadline, Additional Tax Rate Is 0.125%
If Exceeded, Additional Tax Rate Increases to 0.25%

From this year, companies that pay lecture fees, consulting fees, etc. will be subject to a 0.25% additional tax if they fail to submit a simplified payment statement as proof.

On the 13th, the National Tax Service announced that since the grace period for the additional tax on failure to submit the simplified payment statement for other income ended at the end of last year, companies must be aware that they will be liable for the additional tax if they do not submit the simplified payment statement starting this year.

The system requiring monthly submission of simplified payment statements for other income was implemented from 2024, and the additional tax was deferred until December 31 of last year to reduce the burden on taxpayers.

The submission target for the simplified payment statement for other income includes companies that temporarily receive personal services such as lectures and consulting and pay compensation; that is, companies must submit these statements monthly. If personal services are provided continuously and repeatedly, like professional instructors, it is classified as business income from personal services, whereas if lectures, consulting, and other personal services are provided temporarily or incidentally, it is classified as other income from personal services.

Other types of other income, such as lottery winnings and compensation received from the transfer, rental, or use of assets or rights, are not subject to monthly submission and only require an annual payment statement as before.

The deadline for submitting the simplified payment statement for other income is the last day of the month following the month in which the payment was made. For example, if lecture or consulting fees were paid in January this year, the statement must be submitted by the 28th of this month. If this deadline is missed, a 0.25% additional tax will be imposed. However, if submitted within one month after the deadline, the additional tax is reduced to 0.125%.

The simplified payment statement for other income can be submitted to the relevant tax office or through Hometax. If submitted monthly, there is no need to submit an annual payment statement for the total amount paid during the year.

A National Tax Service official stated, "The National Tax Service will actively strive to collect income data accurately and completely so that vulnerable groups can receive welfare benefits in a timely manner, and to make it convenient for taxpayers to submit their documents."

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