Submission by Service Provider Broker/Agent, Not the Income Earner Themselves
[Sejong=Asia Economy Reporter Kim Hyunjung] From this month, monthly submission of income data for special-type workers (special employment types, or "teukgo") who receive payment directly from customers, such as designated drivers, quick service couriers, and caddies, will be implemented. The data will be submitted not by the income earners themselves but by the service provision intermediaries or brokerage businesses.
On the 8th, the National Tax Service (NTS) announced that since the 6th, it has sent integrated guidance documents regarding monthly income data submission to 50,000 businesses (30,000 corporations and 20,000 individuals) that mediate or broker services for designated drivers and others. Eight industries where workers receive payment directly from customers rather than businesses?including designated drivers, quick service couriers, caddies, caregivers, housekeepers, baggage handlers, used car salespersons, and bathroom service workers?will have their income data submission cycle shortened from annual to monthly starting this month.
The income data must be submitted not by the income recipients but by those who provide the workplace or mediate/broker the services. For example, income data for designated drivers is submitted by designated driver brokerage companies, and income data for caddies is submitted by golf course operators.
The type of income data to be submitted varies depending on the transaction method, even for the same business operator. For instance, if a business only mediates between designated drivers and customers, and the customer pays the driver directly, the business must submit a tax data submission statement for workplace providers, etc. If the business receives payment from the customer and then pays the designated driver, it must submit a simplified payment statement. Businesses that hire daily workers for tasks such as call reception must submit a daily worker income payment statement.
The deadline for submitting income data for income earned in a given month is the last day of the following month. Income data for income earned between November 11 and 30 of this year must be submitted by the 31st of this month. However, income data for income earned from January 1 to November 10 of this year, before the submission cycle was shortened, can be submitted by the end of February next year as before.
Electronic filing is possible through Hometax and Sontax, and submission by visiting tax offices or by mail is also allowed. The NTS stated that it will provide instructional videos such as "How to Submit" via Hometax and Sontax and explain examples of form completion by type.
If income data is electronically submitted within the deadline, a tax credit of 300 KRW per service provider is available, up to an annual limit of 2 million KRW. From income earned after January next year, a fine of 200,000 KRW per unsubmitted income data case will be imposed. If data is partially omitted or submitted inaccurately, the fine is 100,000 KRW per case.
Income earners can also check their income details submitted by businesses through Hometax and Sontax. Starting January next year, they will also be able to directly correct their income data.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
