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| gettyimagesbank |
A growing number of high-income YouTubers are seeking various ways to avoid taxes, as the nation's tax agency has stepped up efforts to crack down on them amid a rapid rise in their income.
Some popular YouTubers have seen their income climb to as high as $2.5 million (2.85 billion won) a month.
According to Social Blade, a website that tracks social media statistics and analytics, most notably the YouTube platform, 10 Korea-based YouTubers made an estimated monthly income over $200,000 as of Monday.
The highest earner, Boram Tube Vlog, saw its monthly ad income soar to $2.5 million in April from $1.5 million in December.
They are seeking professional consultations with accountants whose recommendations include registering as business owners to enjoy a range of tax benefits.
The suggestion is especially valid to those with an annual income under 24 million won, as they are eligible for most tax deductions without submitting necessary tax forms.
Money spent on making a clip is recognized as a business expenditure, meaning the deductibles are not used as a basis for the tax authorities to levy corporate tax.
Expenses include money spent on buying food, beverages, as well as tickets for buses, trains or flights needed to travel to hot "foodie attractions."
However, registering as a "freelancer" instead is a cost-saving option for those to whom paying a premium for the state-run healthcare service and pension service is a substantial burden.
Corporate tax exemption is allowed for YouTubers aged between 15 and 34.
Meanwhile, the collective move came after the tax authorities intensified scrutiny on the new group of people leading a lucrative business without due amount of tax.
Most recently, the National Tax Service (NTS) levied 500 million won in income tax on a YouTuber who deliberately failed to report income derived from making video clips on the platform as well as one from running an e-commerce site riding on their YouTube-driven popularity.
YouTubers with over 1,000 subscribers and page view times reaching 4,000 hours within a year are able to sign a contract with the platform for ads to play before their videos.
Most YouTubers have avoided taxation because the proceeds divided between the YouTubers and the platform operator are sent directly to an account designated by the former.
Unless an audit is conducted to track transfer records, such income is not easily identified.
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