Services for These Kinds of Solo Businesses and Freelancers
Even among 3.3% freelancers, the income structure and easily missed expense items differ by field
Online Lectures
Platform payouts from Inflearn, Class101, YouTube, and more — file as business income when the activity is recurring
A course just takes one recording, but your filing needs yearly attention
Corporate & Private Instructors
3.3% withholding on lecture fees; income from multiple institutions is combined into one filing
Every lecture is new, but the filing rules stay the same
Translation
From lump-sum publisher fees and royalty settlements to zero-rate VAT for overseas clients
You translate language smoothly, so let us translate your taxes just as smoothly
Interpretation
Event and conference interpreting fees are mostly day-rate business income; income from multiple agencies must be combined
Interpreting is flawless in real time, so give your filing some breathing room
Video Editing
Subscription fees for Premiere Pro, DaVinci Resolve, and other editing software, plus high-spec rendering equipment, recognized as expenses
Cut footage by instinct, but trust our instincts for cutting your expenses
Photographer
Depreciation for cameras, lenses, and other high-value gear; expense processing for studio rent and location shoot costs
You capture the moment with a shutter, so it is best to capture your taxes early too
Composer
Streaming royalties withheld as copyright fees; check your copyright registration and royalty settlement structure
A melody lingers in your ear, so keep your tax filing in mind too
Arranger
Arrangement fees split between business and other income; also check the timing of neighboring-rights settlements
Every arrangement is new, but the filing method is not always the same
Sound Designer
Guidance on expensing game and video sound outsourcing fees, plus plugin and audio equipment subscriptions
You fine-tune every sound with care, so let us fine-tune your taxes with the same care
Singers & Performing Artists
Performance and event fees count as business income; also check enrollment in artist employment and workers' compensation insurance
Flawless on stage is great, but improvising your tax filing is not
Personal Trainer (Fitness)
How PT revenue is settled for freelance trainers affiliated with a gym, and filing methods with or without business registration
You fix your clients' form, and we will fix your taxes
Craft Designer
Guidance on expensing revenue from online shops and flea markets, plus materials costs and consignment sale fees
You handcraft each piece with care, and we will handle your books with the same care
Getting Your 3.3% Withholding Tax Refund?
When a freelancer is paid for a service, 3.3% withholding (3% income tax + 0.3% local income tax) is deducted. Filing comprehensive income tax once a year and reflecting your actual expenses can get you back part of the tax you already paid.
A Refund Example
For a freelancer with 50 million KRW in annual revenue, 1.65 million KRW is withheld. If the actual tax due after expense deductions is lower than that, the difference is refunded. How well you track your expenses is the key.
Recognized Expense Items
3.3% Freelancer vs. Business Registration: What is the Difference?
A 3.3% freelancer wraps up with a single comprehensive income tax filing every May, but cannot issue tax invoices and has a narrower range of recognized expenses. Registering as a business adds VAT filings, but lets you expense business spending much more broadly and claim startup tax reductions. If your income is growing and clients are starting to ask for tax invoices, switching to business registration is often the better choice, so it is worth checking in advance which option fits your situation.
| Category | 3.3% Freelancer (Personal Services) | General-Taxation Business Registration |
|---|---|---|
| Tax filing | Comprehensive income tax once a year in May (3.3% withholding settled) | VAT (twice a year) + comprehensive income tax (once a year) |
| Expense recognition | Simplified/standard expense ratio, or self-documented bookkeeping | Broad recognition of business spending, plus VAT input tax credit |
| Tax invoice issuance | Not possible | Possible — often required for contracts with corporate clients |
| Double-entry bookkeeping threshold | 75 million KRW (personal-services code 940900 series) | Up to 150 million KRW depending on industry code |
| Startup tax reduction | Not applicable | Startup SME tax reduction, youth startup reduction, and more applicable |
| 4 major insurances | Self-paid as a regional subscriber | Same (converts to workplace subscriber when hiring employees) |
If your income is growing and clients are starting to ask for tax invoices, now may be the time to consider business registration.
Your Industry Code Changes the Rules
Doing the same work can mean different bookkeeping obligations and tax-reduction eligibility depending on which code you file under
Why the Industry Code Matters
The code a platform or client uses when withholding tax often differs from the actual nature of your business. If the code is wrong, the threshold and eligibility for reductions can shift entirely, so confirming the correct code before registering is the first step toward tax savings.
You Can File Even Without Books — Estimated Filing
Not keeping books does not mean you cannot file. But it is often less favorable than book-based filing
Simplified Expense Ratio
For small businesses whose prior-year revenue is below the industry threshold (24 million KRW for services and similar fields). Income is calculated simply by applying a fixed expense ratio to revenue.
Standard Expense Ratio
For businesses with higher revenue. Only actual, documented major expenses (purchases, rent, labor costs, etc.) are deducted, with a lower ratio applied to the rest, making the calculation more complex and the tax burden often heavier.
Estimated filing is usually less favorable than book-based filing, and double-entry bookkeeping filers who use estimated filing can also face a non-bookkeeping penalty. For a detailed calculation method, see the Estimated Filing Expense Ratio Guide.
When Is It Better to Register as a Business?
There is no fixed revenue threshold, but the more of these signals overlap, the more worth considering a switch
When rising annual income requires tax invoices and VAT refunds
The more you work with corporate clients, the more they ask for tax invoices, and only registered businesses can get VAT refunds on purchases such as equipment and office space.
When your expense ratio is high
If your actual spending on equipment, office space, and outsourcing is significant, book-based filing after business registration often results in a lower tax burden than the fixed ratios used in estimated filing.
When you hire employees or collaboration increases
This is when you need to report payroll and enroll in workplace insurance — something that is difficult to handle without business registration.
Revenue and expense structures vary by person, so a single uniform threshold cannot answer this. Bring your current income and expense details to a consultation for a concrete read on the right timing.
If You Are Being Paid by Overseas Clients
Check whether zero-rate VAT applies to income from platforms like Upwork and Fiverr
More freelancers, including designers, translators, and developers, are working through overseas platforms. Payment received from abroad also must be combined with domestic income and reported for comprehensive income tax, but if it qualifies as a foreign-currency-earning service, a zero VAT rate (0%) may apply.
Documentation Is Key
Without proper documentation, such as a foreign currency remittance certificate, you may be taxed at the general rate instead. The settlement structure (platform fees, exchange timing, etc.) requires prior review, so if you have overseas income, we recommend consulting in advance.
Related Articles
Freelancer vs. Employee: Differences in the 4 Major Insurances and Taxes
A comparison of how taxes and insurance differ depending on your contract type.
Expense and Deduction Items Freelancers Often Miss
Practical expense tips to maximize your 3.3% refund.
Should Freelancers Join the Nolan Umbrella Fund Too?
How to combine income-deduction benefits with a safety net for when you close your business.
How to Register a Business Card and Account on Hometax
The starting point for automating your expense tracking, explained step by step.
General vs. Simplified Taxpayer: What is the Difference?
The criteria for choosing your taxation type when registering a business.
A Complete Guide to Estimated Filing Expense Ratios
How the simplified and standard expense ratios are calculated, explained through real examples.
Solo Business & Freelancer Peace-of-Mind Support
Do Not Open That National Tax Service Letter Alone
Unfamiliar tax terms and sudden notices — we review them first and explain everything in plain language
Focus on Your Work
Most notices and requests for explanation from the National Tax Service or local governments follow a set format, but they can still be unsettling the first time you receive one. Once you sign a bookkeeping contract with us, we review any mail or calls first and guide you through whatever action is needed.
Ask Us on KakaoTalk Whenever a Term Is Unclear
"Does this count as an expense?" "Why do I need this document?" — questions that are hard to answer by searching alone. Do not hesitate to ask. Tax Accountant Kwon Ji-hyun will explain everything in plain language.