How does a freelance artist who works at multiple tattoo shops report taxes?
If you rent shop space, take on clients individually, and receive payment directly, you must report each of those amounts as your own business income under comprehensive income tax. If instead you receive payment that's already had 3.3% withheld by a shop operator, that's classified as business income rather than employment income, and you simply combine it with your other income and file it the following May. It's also important to remember that if you provide services continuously and repeatedly for a fee, you're subject to business registration.
The Most Confusing Part — Business Registration and Deposit Revenue Recognition
You should sort out your industry code choice and timing for recognizing prepaid revenue in advance
Register under the industry code that matches your service type
Semi-permanent makeup is often registered under a beauty-related industry code, while regular tattooing is often registered under a separate industry code. If you provide services continuously and repeatedly for a fee, you're subject to business registration, so confirm the industry code that matches your actual service type.
Deposits are recognized as revenue when the service is completed
Even if you receive a deposit or design fee in advance, the principle is to recognize revenue when the service is actually completed. Align the timing of tax invoice/cash receipt issuance with the timing of revenue recognition to avoid filing errors.
Income Structure of Tattoo Artists & Semi-Permanent Makeup Artists
Key Expense Items
Must-Read for Tattoo Artists & Semi-Permanent Makeup Artists
Split Your Equipment & Materials Costs by Type to Save on Taxes
From tattoo machines to personal studio rent, categorizing each item correctly cuts unnecessary tax
Long-Term Fixed Assets — Depreciable Equipment
Service equipment: tattoo machine, dedicated semi-permanent device
Service fixtures: dedicated service chair, task lighting
Studio equipment: interior, sterilizer (autoclave)
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
Ink, needles (tips), numbing cream, and sanitary supplies (gloves, wrap) are fully expensed at the time of purchase. This industry spends heavily on hygiene-related supplies, so keep every receipt without exception.
Personal Studio Rent
If you lease and operate a personal studio, the rent is recognized as a necessary expense. Even when renting shop space by the hour, keeping the rental receipt lets you expense it as well.
Portfolio & Marketing Costs
Social media marketing costs like Instagram and booking management platform fees are recurring monthly expenses that are fully deducted at the time incurred.
| Category | Examples | Tax Treatment |
|---|---|---|
| Long-term fixed assets | Tattoo machine, service chair, sterilizer | Depreciate if over 1 million KRW |
| Supplies | Ink, needles, numbing cream, sanitary supplies | Fully deductible at purchase |
| Studio rent | Personal studio or shop space rental fee | Immediately deductible |
| Portfolio & marketing | Social media ads, booking platform fees | Immediately deductible |