ID photos are low-value transactions — do I still have to issue cash receipts?
Photo studios are a mandatory cash-receipt-issuing business, so for transactions of 100,000 KRW or more you must issue one even without a customer request, and for transactions under 100,000 KRW you must still issue one if the customer requests it, regardless of the amount, to avoid a penalty tax. If you run a franchise location, we recommend claiming royalties, training fees, and co-purchased materials as necessary expenses by obtaining tax invoices from headquarters, and if you operate multiple locations, business registration is required for each location as a general rule.
The most confusing part — cash receipts for many small transactions
We cover the issuance obligations that are easy to miss in a high-volume, low-margin business
If a customer requests one, you must issue it regardless of amount
Photo studios are a mandatory cash-receipt-issuing business, and transactions of 100,000 KRW or more must be issued without a request. ID photos are mostly under 100,000 KRW, but you must still issue one if the customer requests it to avoid a penalty tax.
Franchise fees and royalties are normally deductible
If you run a franchise location, royalties, training fees, and headquarters co-purchase materials can be recognized as necessary expenses. If you obtain a tax invoice from headquarters, you can expense them without further verification.
Income structure of an ID & passport photo studio
Key expense categories
Must-read for ID & passport photo studios
Sort printing equipment and consumables by category to save on taxes
From lighting and printers to retouching staff, sorting each item correctly reduces unnecessary tax
Long-term fixed assets — depreciable equipment
Shoot setup: ID photo-specific lighting set, blue/white backdrop system
Printing equipment: instant printer, photo printer
Store equipment: POS system, kiosk
Anything over 1,000,000 KRW per unit is classified as a depreciable asset and must be expensed gradually over its useful life.
Consumables — expensed immediately
Photo paper/ink, passport-size photo paper, photo frames/cases and other consumable materials are expensed in full at the time of purchase. Given the high-turnover nature of this business, consumable spending occurs frequently, so keep every receipt.
Personal services/labor costs
Assistant staff handling retouching and customer service are reported as employment income if working regular hours, or as 3.3% withholding business income if contracted as freelancers.
Franchise fees/headquarters management costs
If you run a franchise location, royalties, training fees, and headquarters management system fees are recurring expenses paid out at the time of payment, and you must obtain a tax invoice or invoice from headquarters.
| Category | Examples | Tax treatment |
|---|---|---|
| Long-term fixed assets | Lighting set, backdrop system, printer, POS | Depreciated if over 1,000,000 KRW |
| Consumables | Photo paper, ink, frames, cases | Expensed in full immediately upon purchase |
| Personal services/labor | Retouching/front-desk assistant staff | Employment income or 3.3% withholding |
| Franchise fees/HQ management | Royalties, training fees, management system fees | Expensed immediately |