I have a flat monthly contract editing a YouTube channel - should this be treated as employment income?
Even with a fixed monthly payment, it is classified as business income (3.3%) as long as it is a service contract for editing work rather than an employment contract. However, if you are effectively directed on working hours or location like an employee, a separate review of labor-law risk may be needed. High-spec PCs and graphics cards over 1 million KRW must be treated as depreciable assets, and subscriptions for stock footage or music libraries can be treated as necessary expenses if their business relevance is recognized.
Income Structure Features for Video Editors
Key Necessary Expense Items
Tax Advantages for Video Editors
Spread Tax Burden Through Equipment Depreciation
High-spec PCs and graphics cards over 1 million KRW should be depreciated over time, while consumable equipment of 1 million KRW or less can be fully expensed immediately upon purchase.
Consolidate Income Across Multiple Channels
Managing withholding records from multiple YouTube channels and clients together ensures you receive an accurate refund without missing any prepaid tax.
Consider Zero-Rate VAT for Overseas Client Projects
Editing outsourcing for overseas channels or companies may qualify for zero-rate VAT if recognized as a foreign-currency-earning service.
The Most Common Mistake in the Field
The most common mistake is signing a flat monthly editing contract without keeping any documentation for equipment and software subscriptions actually used, which leaves almost no necessary expenses recognized when filing comprehensive income tax.