From star balloons and donations, settlement to May taxes

When the first money comes in through broadcasting, the numbers change three times. The amount paid by the viewer, the amount recorded in my bank account, and the final amount determined in May of the following year are all different. This article organizes where the three numbers diverge using the SOOP official guide and National Tax Service data. This is less of a tax consultation and more of a checklist for streamers.

How much does one star balloon actually cost?

Grades are determined. SOOP streamer guide states, “The exchange amount for each star balloon is 60 won for regular streamers, 70 won for best streamers, and 80 won for partner streamers.”

General Streamer60

Best Streamer70

partner Streamer80

The difference in numbers may seem small, but it changes as the numbers add up. Below is the math that multiplies the above unit price.

Same broadcast, same number of viewers, same number of viewers, but one rating can cost millions of won on an annual basis. This is why taking care of the rating conditions comes before inducing sponsorship.

What does it take before applying for a currency exchange?

It takes three. Quantity, real name, and period.

The conditions set by the same guide are as follows. "You must have 500 or more star balloons as a gift to apply for currency exchange." And "Non-real-name accounts cannot be exchanged, and you can only apply for currency exchange after verifying your real name." Lastly, "Star balloons are valid for 5 years from the time you receive them as a gift."

In practice, the problem is usually the second one. You can start broadcasting anonymously, but the moment you get paid, your real name is required. If authentication is blocked before the first currency exchange, the entire settlement for that month will be delayed.

What steps does it take for donations to arrive in my bank account?

There are five stages, and the points where the amount changes are stages 3 and 4.

What comes in in stage 1 is not yet money, but platform goods. In step 2, you must submit the quantity and real name conditions to open the application, and in step 3, the level price is attached and the amount is confirmed.

Step 4 is a confusing place. Depending on the payer, taxes may be deducted first before being paid. The National Tax Service defines withholding tax as “a system in which the income earner does not pay his or her own tax directly, but the withholding agent who pays the income subject to withholding tax collects the tax from the income earner in advance and pays it to the government.” The key is the word in advance.

So, if I write down the amount in my bank account as my final income, the calculation will be wrong later. What you actually need to check is not the deposit amount, but the total payment amount and withholding tax amount written on the payment statement.

What do I report in total in May?

All income received from one person is collected. We do not look at the donation amount alone.

The National Tax Service informs you that comprehensive income includes interest, dividends, business (real estate rental), employment, pension, and other income. If you give this list to the streamer, it will look like this.

There is a common misunderstanding here. I think it's okay because each amount is a small amount. Comprehensive income tax does not set a tax rate for each individual, but adds them all together and then sets a tax rate. If you look at YouTube profits alone, even if it is in a low range, if you add sponsorship and outsourcing, it goes up to the upper range.

The reporting period is May 1 to May 31 of the following year, and if you submit a sincere report confirmation, you have until June 30. How YouTube profits are captured is summarized in YouTube Shorts Monetization Conditions.

How much is the tax?

Multiply the tax base by the section tax rate and then subtract the progressive deduction amount. There is no one tax rate on all income.

Tax base = Comprehensive income amount - Income deduction
Calculated tax amount = tax base x tax rate - progressive deduction amount
Local income tax = 10% of calculated tax amount (attached separately)

If we translate the example provided by the National Tax Service on the tax rate page, when the tax base is 30 million won, it is 30,000,000 won x 15% - 1,260,000 won = 3,240,000 won.

Under 14 million won6

Under 50 million won15

Under 88 million won24

Under 150 million won35

less than 300 million won38

Under 500 million won40

Under 1 billion won42

Exceeds 1 billion won45

There are two practical conclusions that emerge from this structure. First, the tax rate does not apply to previous income even if you go up one bracket. The progressive deduction amount is a device that offsets the difference. Second, Reducing the tax base is more certain than worrying about the tax rate bracket. The tax base is calculated by subtracting deductions from income, so keeping the money you spend as proof is directly reflected in your taxes.

How do I keep the money I spent?

Costs spent on broadcasting and editing must be recorded to be included in the calculation.

What streamers actually spend is largely fixed. Below is a checklist of what expenses remain and in what form.

• Editing outsourcing fee: account transfer details, estimate, payment statement
• Editing tools and AI subscription fees: card details and receipts, dollar amounts and conversion amounts for overseas payments
• Equipment: Cam, microphone, lighting, graphics card purchase receipt
• Broadcast material: Fonts, sound effects, overlay purchase history
• Communications and electricity: evidence to explain the proportion used in broadcasting

The key is not the amount, but the presence of proof. To see this part when setting the unit price for editing outsourcing, it is helpful to read Short-form editing outsourcing price and YouTube editor job openings] together.

What happens if I don’t report it?

You will not receive anything in return. And there is still more to pay.

There are separate reasons for exclusion from reporting determined by the National Tax Service. This includes cases where year-end tax settlement is done with only earned income, cases where there is only retirement income and business income subject to year-end tax settlement, cases where there is only non-taxable or separately taxed income, cases where separate taxation is desired for other income of less than 3 million won per year, etc. Streamers with sponsorship conversions do not appear anywhere on this list.

Conversely, there are many cases where reporting is advantageous. If the tax deducted first at the time of payment is more than the final tax amount, you must report it to receive the difference back. This is especially true in times when income is low and expenses are large, such as the first year of broadcasting. If you do not report it, no refund will be issued.

What should I prepare first?

If we try to do it all in January, we won't be able to do it because we don't have the data. This is the order in which they are stacked together while broadcasting.

1️⃣ Collect deposit accounts into one: If you receive sponsorship exchange, YouTube revenue, and outsourcing payments into the same account, the time to pull out statements in May will be greatly reduced.

2️⃣ Save payment statements on the fly: The total payment amount and withholding tax amount are written on the documents issued by the platform and the payment source. These two numbers cannot be restored just by looking at the bank account deposit amount.

3️⃣ Collect proof of expenses on a monthly basis: Place editing outsourcing fees, subscription fees, and equipment receipts into one folder each month. It's simpler if you dedicate one card to broadcasting.

4️⃣ Check the level conditions: The exchange price varies from 60 won to 80 won depending on the level, so if you miss the level maintenance conditions, you will lose income.

5️⃣ Add it up before May: If you add up sponsorship, advertising, and outsourcing, and put it on the tax rate table, you will get the approximate tax amount. If you have that number set aside in advance, you won't be caught off guard in May.

As profits increase, the time and cost of editing also increases. Reducing the repetitive task of extracting clips from broadcast replays saves you money in terms of both expenditure and time. ClipSpray receives the entire replay of Chizizik and SOOP and selects candidate sections by looking at chat and Done reactions as signals.

Frequently Asked Questions

How much does one star balloon cost?

Based on the SOOP streamer guide, it is 60 won for regular streamers, 70 won for best streamers, and 80 won for partner streamers. The amount paid by the viewer and the amount received by the streamer are different numbers.

If the donation amount is small, can I not report it?

The SOOP official guide informs you that if you exchange star balloons, you are required to report comprehensive income tax regardless of the amount. The reasons for exclusion from reporting determined by the National Tax Service are set separately, such as cases where there is only earned income and year-end tax settlement, and donation exchange amounts are not included there.

I already paid taxes on it, but do I need to report it again?

You have to do it. The withholding tax collected at the time of payment is collected in advance and has not been settled. In May, all income is added up to obtain the final tax amount. If the amount deducted first was large, it is refunded, and if it is not enough, the amount is paid more. If you do not report it, you will not receive a refund.

Do I report YouTube revenue and star balloons separately?

Calculate them separately and combine them. Comprehensive income tax is a structure that collects interest, dividends, business, labor, pension, and other income from one person to create a tax base and sets a tax rate on it. If you look at YouTube revenue alone, even if it is in a low range, if you combine it, it can rise to the upper range.

When do I file my taxes?

It runs from May 1 to May 31 of the following year. If you submit a sincere report confirmation, you have until June 30th.

If my income increases, will my previous income also be subject to higher tax rates?

No. Tax rates are levied by section. The calculation is by multiplying the tax base by the tax rate for the corresponding section and then subtracting the progressive deduction amount, so going up one notch does not equal the entire tax rate.

Source

• SOOP Streamer Guide (Star Balloon)
• National Tax Service (comprehensive income tax overview)
• National Tax Service (comprehensive income tax rate)
• National Tax Service (Overview of Withholding Tax)
• National Tax Service (business income subject to withholding tax)
• YouTube Help Center (Shorts Monetization Policy)