The South Korean government is considering lowering its foreign currency remittance reporting criteria from over US$10,000 a year in order to prevent YouTubers from evading taxes.
Specifically, the National Tax Service is currently discussing with related government agencies the downward adjustment of the upper limit of annual foreign currency payment to YouTubers subject to reporting and this is because some of them are receiving money by using different names for tax evasion purposes. Last year, the National Tax Service collected 500 million won in tax from a famous YouTuber who earned an annual income of two billion won. South Korean YouTubers’ YouTube ad revenues are remitted in U.S. dollar directly from Google Singapore to their accounts in South Korea, which means the National Tax Service can detect the revenues only after their voluntary ad revenue reporting.
“At present, any annual foreign currency payment of over US$10,000 must be reported to us,” the National Tax Service explained, adding, “The upper limit can be lowered so that tax evasion can be prevented.”
The adjustment can be made simply by the Ministry of Economy and Finance changing some transaction rules. “We have no reason not to consider changing the rules if the National Tax Service makes a request,” the ministry said.