Political YouTubers under scrutiny from NTS amid tax evasion concerns

By Lee Kyung-min

The National Tax Service (NTS) is intensifying scrutiny of political YouTubers’ tax filings, prompted by allegations of tax evasion raised during National Assembly audits, according to industry watchers and tax officials, Thursday.

Propelling the move is a surge in the number of politically divisive digital content creators sparked by President Yoon Suk Yeol’s failed attempt to impose marital law in early December and the ensuing impeachment proceedings.

Many right-wing and left-wing online media influencers continue to rake in cash and cash-equivalent points in the name of donations, often by engaging in extreme vitriol- and hatred-filled languages.

According to data from the NTS submitted to Rep. Cha Gyu-geun of the minor opposition Rebuilding Korea Party, the tax agency has been closely monitoring political YouTubers who organized a donation-raising event in front of former President Moon Jae-in’s home in 2022.

However, the tax authority has not initiated an investigation. According to Cha, the NTS has been unable to launch a tax investigation due to a lack of individual transaction histories to identify tax evasion.

Still, an immediate investigation will be triggered by irregularities as confirmed by real-time data from the Korean Financial Intelligence Unit under the Financial Services Commission, as well as foreign exchange transaction records.

“We are committed to continuous monitoring of any irregularities. Any tax evasion suspicions will be thoroughly investigated upon confirmation,” an NTS official said.

Digital content creators who produce and share videos online for profit are subject to comprehensive income tax. Included are YouTubers and internet broadcasters.

Income from donations or subscription fees received through "super chats," where a bank account number is shared for cash transfers, is also taxable.

Under the law, taxable income subject to comprehensive income tax includes interest, dividends, business income, earned income, pensions and other income.

Those earning such an income in a given year must file a tax report and pay by May of the following year.

Cha said a swift passage of a revision to the income tax law is needed to clarify legal grounds for taxation on digital income earners.

According to a bill he introduced in December, all cash digital content creators receive from viewers is defined as taxable income. This seeks to prevent loopholes where some YouTubers receive “donations” via account numbers they show on screens without reporting them as income.