Tax Guide for Pension & Guesthouse Owners

From mandatory cash receipt issuance to managing booking-platform settlements, we walk you through the tax issues unique to lodging businesses.

Keep the guest rooms spotless — we'll keep your tax filing gap-free.

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The settlement amount from Yanolja or Airbnb is less than what I actually received — which figure do I report as revenue?

Keep in mind that the amount a platform deposits is already the net amount after its commission is deducted. Revenue should be recorded based on the total lodging fee before commission, and the intermediary/payment-processing fees you pay the platform should be reflected as a separate expense. If you report only the net amount as revenue, your revenue will be understated, which can become a problem in a later tax audit — so we recommend managing the total amount and the fee separately based on the settlement statement.

Revenue Structure Features of Lodging Businesses

Settlements from multiple platforms — Yanolja, Yeogieotae, Airbnb, and more — are mixed together
Large swings between peak and off-season revenue make cash-flow and tax planning important
Walk-in direct bookings (cash payment) occur alongside platform bookings
Eligible for the card-sales VAT credit (1.3% of issued amount, 2.6% for simplified taxpayers, capped at KRW 10 million/year); subject to mandatory tax-integrity review if prior-year revenue exceeds KRW 750 million

Key Expense Items

Booking-platform intermediary fees
Room supplies and consumables (bedding, amenities, etc.)
Cleaning and maintenance labor costs
Depreciation on the building/facility
Utility costs and other operating expenses

Common Tax Mistakes We See

Missing mandatory cash receipt issuance

Lodging is a mandatory cash-receipt-issuance business. Cash payments of KRW 100,000 or more must be issued a receipt even without the guest's request, and failing to do so triggers a penalty of 20% of the unissued amount.

Recording the platform settlement amount as-is as revenue

The amount deposited by a platform is already net of fees. Accurate filing means recording the total lodging fee (before fees) as revenue and the fee as a separate expense.

Checking registration requirements for your operating format

Farm-stay lodging, foreigner-tourist urban homestays, general lodging businesses, and other formats fall under different laws and registration procedures. Confirming which registration category applies before you register your business helps avoid problems down the road.

Frequently Asked Questions

Plan Your Taxes to Match the Swings Between Peak and Off-Season Revenue

Tax Accountant Kwon Ji-hyun, who understands lodging-industry platform settlement structures, is ready to consult with you.

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