Abstract

This study provides recommendations to improve the taxation of personal service income. First, the scope of business income should be clearly defined in the Enforcement Ordinance of the Income Tax Act. Second, the amount of withholding tax on small－scale personal service income earners should be minimized. Third, the amount of income based on the application of the simple expense rate to personal service business operators should be increased and the excess rate should be abolished. Fourth, it is necessary to consider a plan to apply the same level of necessary expenses as for temporary personal services to reward, and to apply the necessary expenses at about 20% level for brokerage fees. Fifth, it is necessary to consider a plan to differentiate the necessary expense rate for each section of the income amount for temporary personal service income or to set a limit on necessary expenses for the necessary expense ratio.

Keywords

• Personal Service Income
• Business Income
• Other Income
• Necessary Expense
• Simple Expense Rate
• Standard Expense Rate

Related Articles

• Cases Study on Business and other Income Taxation System on the Personal Service

  Jong-chul Yoon

  18(2) 33-58

  Abstract Full Text for PDF

• A Study of Taxation Proposal of Intellectual Property Rights Transaction

  JungHwa, Suh

  20(5) 9-28

  Abstract Full Text for PDF

• A Study on Improvement of Income Taxation on Labor Service Provider

  Park, Jung Woo

  16(6) 109-133

  Abstract Full Text for PDF

• Problems and Improvement of Estimated Income Taxation on the Personal Service Income

  Hyun Geol Shin

  15(5) 293-317

  Abstract Full Text for PDF

• A Study on the Improvement of Filing Tax Return under Estimation

  Taeseung Park

  7(4) 109-131

  Abstract Full Text for PDF