When contracting with a lesson pro, should it be a freelance contract or an employment contract?
If the lesson pro sets their own lesson schedule and recruits and manages their own students, a business-income freelance contract with 3.3% withholding fits well, but if they work fixed hours under the facility's direction, they may need to be treated as an employee — so we recommend reviewing both the contract type and the actual working arrangement together. Equipment such as simulators and bay netting is classified as a depreciable asset once it exceeds KRW 1 million and must be expensed over its useful life, while bay-booking system fees are expensed in full at the time they're incurred.
The Trickiest Part — Simulator Depreciation and Pass Revenue
High-value equipment investment and revenue recognition for prepaid passes are the key issues
Manage Screen Golf Simulators as Depreciable Assets
Screen golf simulators tend to carry a high per-unit price, so it's more stable for tax purposes to expense them over their useful life rather than in full in the year of purchase.
Recognize Bay Passes and Flat-Rate Passes at the Time of Use
For prepaid bay passes and flat-rate passes, VAT is reported at the time of payment, but for income tax purposes revenue should, as a rule, be recognized in proportion to the number of visits or the period actually used.
Income Structure Features of Golf Ranges & Screen Golf
Key Expense Items
Must-Know for Golf Ranges & Screen Golf
Split Simulator & Bay Equipment by Category to Save on Taxes
From screen golf simulators to booking systems, categorizing each item correctly is what cuts unnecessary tax
Long-Term Fixed Assets — Equipment Subject to Depreciation
Screen golf equipment: simulators, screens/projectors
Bay fixtures: bay netting, mats
Once a per-unit purchase exceeds KRW 1 million, it's classified as a depreciable asset and must be expensed over its useful life.
Consumables — Immediate Expense
Golf balls, tees, and gloves are expensed in full at the time of purchase.
Personal-Service Costs — Lesson Pro Pay
Lesson pros are filed as business income (3.3% withholding) or employment income depending on how they actually work.
Bay-Booking System Fees
Bay reservation management system fees are a recurring monthly cost, expensed in full at the time they're incurred.
| Category | Typical Examples | Tax Treatment |
|---|---|---|
| Long-term fixed assets | Simulators, bay netting/mats | Depreciated once over KRW 1M |
| Consumables | Golf balls, tees, gloves | Fully expensed immediately at purchase |
| Personal service | Lesson pro pay | 3.3% withholding or employment income |
| Booking system | Bay reservation management fees | Expensed immediately |