Tax Guide for Tutors, Study Rooms, and Private Teachers
* Please check the above details in your area when you do your business.
Today, we'll delve into the tax-related matters concerning tutors, study rooms, and private teachers. This article will be beneficial for those who are contemplating starting a tutoring business or are already in the field but are confused about tax matters.
**1. Business Registration
Regardless of the type of business, registration is mandatory. "Where there's income, there's tax" - this adage holds true even for tutors, study rooms, and private teachers. All are deemed as business income earners and hence, need to register their businesses. In these fields, you need to report to the education office before registering your business at the tax office.
You can register a "VAT Exempted Business(면세사업자)" if it's for tutoring for kids.
**2. Reporting to the Education Office
For tutoring centers, individuals intending to establish and operate must submit the following documents to the education office(교육구청):
- Tutoring center(교습소) establishment and operation report
- Documents certifying the qualifications of the tutor
- Copy of a Korean ID issued by a public institution that can verify the tutor's identity
- Floor plan of the tutoring center facilities
- Documents proving the right to use the facilities intended for the tutoring center
For private tutors or study rooms, individuals intending to provide private tutoring must fill out a private tutor report form detailing personal information, tutoring subjects, tuition fees, tutoring location, and more.
**3. Paying License Tax
Before receiving the license certificate (tutoring center report certificate), you must pay the license tax. Failure to do so may result in cancellation or suspension of the license.
**4. Penalties for Violation
Operating a tutoring center or providing private tutoring without reporting to the jurisdictional education support office can result in imprisonment for up to one year or a fine not exceeding 10 million won.
**5. Business Registration with the National Tax Service
With the education office report certificate in hand, you can proceed with your business registration at the tax office.
**6. Application for Business Registration
Within 20 days from the start of your business, you must submit a business registration application to the head of the tax office that has jurisdiction over your business location. You can also register your business even if it's still in preparation.
**7. Required Documents for Business Registration**
The following documents are required for business registration:
- Business registration application form
- Copy of the education office report certificate
- Identification document
- In case of a tutoring center, a copy of the lease contract if the business premises is rented
**8. How to Apply for Business Registration
You can apply for business registration online via HomeTax (www.hometax.go.kr).
Keywords: Tax Guide, Tutors, Study Rooms, Private Teachers, Business Registration, Education Office Reporting, License Tax, Penalties for Violation, National Tax Service, Business Registration Application
FAQs:
1. **Do I need to register my tutoring business?
Yes, regardless of the type of business, registration is mandatory.
2. **What are the penalties for not reporting to the education office?
Operating a tutoring center or providing private tutoring without reporting can result in imprisonment for up to one year or a fine not exceeding 10 million won.
3. **What documents are required for business registration?
The business registration application form, a copy of the education office report certificate, an identification document, and in case of a tutoring center, a copy of the lease contract if the business premises is rented.
4. **How do I apply for business registration?
You can apply online via HomeTax (www.hometax.go.kr).
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