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In case of tax threshold under 50,000 KRW per item
- According to royalty revenue, the monthly royalty is the criterion. For example, if sing A generates 1,000 KRW and song B generates 60,000 KRW, the withholding tax for song A revenue doesn’t occur but the 22.0% (other incomes tax and local income tax) withholding tax will be deducted for song B.
- In case of generating extra revenue from user transaction, it will be considered per trade. For example, user A purchased song B with 10,000 KRW per share in the past. And user A sold 5 shares and user C purchased 1 share for 30,000 KRW (per share) and user D purchased 4 shares for 30,000 KRW (per share). Then these trades are considered as two sperate units. The profit from user C trade is 19,700 KRW (excluded commission) so the withholding tax will not be deducted. However, the profit for user D trade is 78,000 KRW (excluded commission) so there will be. It means that if your profit excluded commission is under 50,000 KRW, you don’t have any withholding tax to pay. Otherwise, the 22% of the whole profit excluded commission will be deducted.
In case of other incomes over 3,000,000 KRW
If your annual other incomes including MUSICOIN revenue is over 3,000,000 KRW, you should report the general income tax and the withholding tax could be deducted naturally. However, if it is over 3,000,000 KRW, you should report the general income tax with adding tax base of global income until every May. You can check your other incomes amount upon period in “My Wallet” page. Even if we are offered your resident registration numbers, we cannot know your other incomes excluding MUSICOIN revenue so if your annual other incomes is over 3,000,000 KRW, you have to report by yourself.
In case of users who didn’t agree with offering resident registration numbers
If you didn’t’ agree with it, we cannot report it on behalf of you. So, please keep in mind that you should do it by yourself with above instruction.