There are a lot of people who are panicking when they first encounter a comprehensive income tax return after turning to freelancer after living paycheck to paycheck. 😱 종소세환급 방법
“Freelancers seem to pay more taxes than office workers… is this just how I feel?”
jasminevista.com
Salary earners who receive salaries can enjoy many income and tax deductions when making year-end adjustments, including medical expenses deductions, education expenses deductions, income deductions for credit card usage, and housing subscription deductions. 🤗
However, if you become a freelancer, called a “3.3% earner,” you will feel that way because there are not many income deductions and tax credits applied.
Still, I can’t help but file a final tax return, so it’s important to take care of the income deduction and tax deduction items that can be applied to me, right? From now on, I’ll give you tips on how to refund the final tax for businesses reporting final tax, including 3.3% income earners such as freelancers. 📢
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# One tip for the return of the final tax,
Examining the items covered by expenses
Necessary expenses are what you spend to get the total amount of income. That is, the money you spend to make money. 💸
For example, expenses related to work such as taking a train for a local business trip, arriving at the destination, taking a taxi to the meeting place, and buying an office laptop for work are recognized as expenses.
And the more expenses that are recognized, the lower the income, and of course, the lower the aggregate income tax. Let’s look at the more detailed expenses that are recognized. 🔎
1️⃣ Business trip transportation and accommodation: Expenses incurred by business trips, such as taxis, including public transportation such as buses and subways, are included. 🚌🚖
2️⃣ Workplace Rent: If you’re renting a workspace, that rent is also recognized as an expense. 🏢
3️⃣ Regional health insurance premiums: Health insurance premiums and long-term care insurance premiums for the elderly as local subscribers can be covered. 🩺
4️⃣ Business vehicle maintenance costs: Car insurance, driver insurance, gas, repair, car tax, toll, etc. If the expenses are spent to acquire and maintain business passenger cars, it can be covered. 🚗
5️⃣ Business-related fixed assets purchase, maintenance, and maintenance costs: IT equipment and software purchase costs are also recognized as expenses. 🖥 ️
6️⃣ Education and training expenses (training expenses): Expenses spent on lectures and seminars are also covered. 👨🏻🏫
7️⃣ Marketing expenses (Advertising expenses): Expenses incurred in producing promotional products, offline, online advertising marketing, etc. can also be covered as expenses. 🔊
8️⃣ Costume expenses: Freelance announcers, celebrities, and other outfits worn during broadcasting can be covered. 👔
9️⃣ Entertainment fee: Expenditure with a specific business partner can also be covered. This includes the expenses for congratulations and condolences. However, if you spend in cash, it is recognized as a necessary expense within the limit of 200,000 won or less per case. 🍴
🔟 Outsourcing costs: Outsourcing service costs related to work can also be handled. 💰
In addition, expenses such as consumable expenses, communication expenses, book purchase and printing expenses, other business-related expenditure fees, and usage fees can also be covered.
However, expenses related to daily necessities and food ingredients, expenditures at department stores, and other household expenses are not recognized as expenses.
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#Certificate Tax Refund Tips Two,
Proof of necessary expenses
In order to be recognized for the necessary expenses mentioned above, it is important to not forget to bring objectively proven data. Eligibility evidence recognized by the tax law includes tax invoices, bills, credit card sales slips, and cash receipts for expenses. 🧾
Individual business owners must have proof of eligibility data when spending on business, and even freelancers who do not register as businesses are recognized as expenses for business-related expenses, so it is recommended to keep proof of eligibility data.
For example, if you are a musician or an athlete, assets such as musical instruments and sports equipment can be recognized as expenses for maintenance and maintenance, insurance planners and car dealers can pay for entertainment and advertising, and webtoon artists can pay for travel and travel expenses for ideas. ✅
Occasionally, there are situations where you may not be able to obtain qualification documents while in business. In this case, you can print out a simple receipt or a copy of the bank account you transferred to to handle your expenses.
The simplified receipt is not included in the proof of eligibility, so to be recognized as expenses, you have to pay a 2% penalty tax for the unfaithful proof of eligibility, but still, it is more advantageous in terms of tax savings to be recognized as handling expenses. 😀
In addition, celebration expenses are recognized up to 200,000 won per case within the annual entertainment fee limit, so it is recommended to keep invitations or obituaries when participating in celebration such as business-related clients, customers, and government offices. When receiving an invitation via Kakao Talk or text message, it is recommended to print the relevant screen.
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In addition, if a private business entity with a double-entry bookkeeping obligation operates a passenger car related to work, it must fill out a vehicle operation log to handle expenses according to the percentage of work use.
If the vehicle operation log is not completed, it is recognized as an expense only up to 10 million won per unit, so it is recommended to develop a habit of writing a vehicle operation log if the annual expenditure for insurance, fuel, and repair costs for the vehicle exceeds 10 million won. 📝
You can download the ‘Vehicle Operation Log’ distributed by the National Tax Service from the National Tax Service site below. After moving to the site, you can search for ‘Business Car’ in the search box
👉🏻 Shortcut of the National Tax Service directive and notification form
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#Certificate Tax Refund Tips Three,
Get income deductions and tax credits
Let’s say there are two freelancers. Both of them had a total income of 50 million won for a year, one of whom received no additional deductions but only his basic deduction.
The other person applied the personal deduction for spouse and child, as well as the income deduction and tax deduction that he/she knew in his/her spare time. The result? As anyone can predict, freelancers who took all the deductions got a much higher refund.