I'm opening a new solo lash-extension studio — is it better to register as a simplified taxpayer?
Not necessarily. If your annual revenue is 104 million KRW or less, you can register as a simplified taxpayer, but simplified taxpayers have limited input tax credit eligibility. Given how heavily this industry relies on supplies purchases — lash adhesive, glue, wax, strips — a general taxpayer, who can claim the full input tax credit, may actually come out ahead. We recommend weighing your expected revenue and purchase volume together before choosing.
The Most Confusing Part — Simplified Taxpayer Determination for Solo Studios
Given how common solo studios are in this industry, choosing your taxation type directly impacts profitability
Simplified taxation isn't always the better choice
If annual revenue is 104 million KRW or less, you can register as a simplified taxpayer, but input tax credit eligibility is limited. Given the high share of supplies purchases in this industry, a general taxpayer may actually come out ahead, so weigh your expected revenue and purchase volume together.
Supplies purchase documentation is the key to tax savings
Lash adhesive, glue, wax, and strips make up a very high share of supplies cost relative to your service prices. Be sure to obtain a bill or card receipt with every purchase, so it's recognized as a deductible expense and significantly reduces your tax burden.
Income Structure of Lash Extension & Waxing Studios
Key Expense Items
Must-Read for Lash Extension & Waxing Studio Owners
Split Your Equipment & Supplies by Type to Save on Taxes
From service chairs to technician incentives, categorizing each item correctly cuts unnecessary tax
Long-Term Fixed Assets — Depreciable Equipment
Service equipment: reclining service chair, task lighting
Waxing equipment: wax warmer
Store equipment: interior, POS system
If a single transaction exceeds 1 million KRW, it's classified as a depreciable asset and must be expensed over its useful life.
Supplies — Immediately Deductible, Key to Cost Ratio Management
Lashes, glue, remover, wax, and strips are fully expensed at the time of purchase. Given how high supplies spending runs in this industry, managing purchase documentation is the key to tax savings.
Personnel Service Costs — Technician Incentives
If a technician is settled as a business-income earner (3.3%), withhold 3.3% of the incentive payment and file and pay it by the 10th of the following month.
Booking Platform & Marketing Costs
Booking platform fees (Naver Booking, etc.) and Instagram advertising are recurring monthly expenses that are fully deducted at the time incurred.
| Category | Examples | Tax Treatment |
|---|---|---|
| Long-term fixed assets | Service chair, lighting, wax warmer | Depreciate if over 1 million KRW |
| Supplies | Lashes, glue, wax, strips | Fully deductible at purchase |
| Personnel services | Technician incentives | 3.3% withholding or employment income |
| Booking platform & marketing | Naver Booking, social media ads | Immediately deductible |