Recently, more and more people are paying with credit or debit cards rather than cash when purchasing goods. But did you know that the deduction rate for cash receipts and debit cards is much higher than the deduction rate for credit cards? Therefore, using a cash or debit card is a better way to get more deductions than using a credit card. Today, let’s take a look at the cash receipt system among them!
The cash receipt system was first implemented on January 1, 2005 to prevent tax evasion of business operators and improve transaction transparency. Consumers who have issued cash receipts are given income deduction benefits when making year-end tax settlement, and sellers can also receive VAT deductions. 현금영수증 카드 등록
The tax deduction rate for year-end tax settlement for consumers is 15% for credit cards and 30% for cash receipts and check cards. Workers can receive income deduction of 30-40% depending on where they use the cash receipt for the amount exceeding 25% of their total salary. 이베이스매뉴얼
In the case of business operators, in relation to the VAT Act, general taxpayers can deduct 1.3% of the supply price, and simplified taxpayers can receive 2.6% tax deduction for food and lodging businesses. However, corporate entrepreneurs with an annual limit of KRW 10 million and individual entrepreneurs with a supply value of more than 1 billion won in the immediately preceding year are excluded from the tax credit.
If you look at the income deduction items classified by the National Tax Service, check cards, cash receipts, credit cards, traditional markets, public transportation, books, and performances are all ‘income deductions for credit card usage’.
However, there is a difference in the income deduction rate for each detailed item that falls under the ‘credit card usage amount income deduction’. If you look closely, it is 15% for credit cards, 30% for prepaid cards, check cards, and cash receipts, 30% for books/performances (only for those earning less than 70 million won per year), and 40% for public transportation and traditional markets.
If you spend more than 25% of your annual salary, you can get a deduction of up to 3 million won for the additional use of 25% or more. However, the deduction limit increases by 1 million won each if there is a history of public transportation use, purchase of books and expenses for viewing a performance (annual annual salary of 70 million won or less), and a statement written at a traditional market.
By adding an additional 3 million won to the 3 million won deduction limit for debit cards, credit cards, and cash receipts, the maximum amount that can be deducted from income tax under the current tax law is up to 6 million won. (Only for those with an annual salary of 70 million won or less)
Businesses listed in the table are obliged to issue a cash receipt from January 1, 2022, even if the consumer does not request for a cash transaction exceeding KRW 100,000 per transaction, including value-added tax. In addition, even if you do not know the personal information of the counterparty, you must issue it to the National Tax Service designated number 010-000-1234 within 5 days from the date of the transaction.
Whether or not the business is subject to mandatory issuance is judged according to the actual business, not the business on the business registration certificate. For example, if a business whose business is a clothing wholesaler sells clothing to consumers for cash, it is mandatory to issue a cash receipt.
The tax authorities have individually sent out a notice on the issuance obligation so that businesses added to the mandatory issuance business do not suffer any disadvantages because they do not know the details of the change.
In general, cash receipts can be issued through a credit card terminal, and in the case of a business that does not have a terminal, anyone can obtain a cash receipt without a separate approval process by applying for issuance of a cash receipt when registering as a business or registering as a Hometax member.
Application route: Access Hometax of the National Tax Service ▶ Inquiry/Issue ▶ Issuance of cash receipts ▶ Application for home tax issuance ▶ Issuance of approved transactions
How to issue a cash receipt
1. Issued by mobile phone number
First of all, you need to register the mobile phone number to be used when issuing cash receipts in Hometax. You only need to do it once. [Hometax Homepage ▶ Inquiry/Issue ▶ Issuance of Cash Receipt ▶ Application for Hometax Issuance] After logging in and registering, present your registered mobile phone number when paying in cash to issue a cash receipt.
2. Issued with multiple cards
As with mobile phones, if you register a specific card in Hometax and present the card when paying in cash, you can issue a cash receipt. The registration method is the same as receiving a mobile phone number.
Cards that can be registered: You can register up to 5 cards, such as check cards, credit cards, point accumulation cards, membership cards, and local currency cards.
What if I forgot to issue a cash receipt? Use the cash transaction confirmation application system!
You must have experienced a cash transaction and forgot to ask for a cash receipt! Did you know that even if you do not request a cash receipt after a cash transaction and you do not receive it, you can receive a cash receipt issuance if you report the cash transaction confirmation later?
The National Tax Service operates a cash transaction confirmation application system so that consumers who have not been issued a cash receipt can receive income deduction benefits.
What is the cash transaction confirmation application system?
In the case of a cash transaction, if a cash receipt is not requested and is not issued, if the consumer prepares the transaction proof and reports it within 3 years from the date of the transaction, the tax office confirms the income deduction.
The report subject is a case where a cash receipt has not been requested or the business has not been issued a cash receipt because it is not a cash receipt merchant.
The method of reporting is [Hometax website ▶ Consultation/Report ▶ Cash receipt, credit card, housing rental complaint report] or submit a written report to the tax office having jurisdiction over the place of business, attaching the transaction proof.
Income deduction benefits can be obtained if the fact of a cash transaction with an industry that is eligible for income deduction is proven and reported within 3 years. However, as this applies to cases where the consumer did not request a cash receipt or the business did not receive a cash receipt because it is not a cash receipt merchant, it is not subject to the reporting bounty.
Get a cash receipt actively in your daily life!
Since the introduction of cash receipts, the amount of issuance has continued to increase, contributing significantly to the training of the self-employed in taxation standards. The tax authorities announced that they will continue to promote the reporting bounty system and focus on managing those who violate the obligation to issue cash receipts! Therefore, it is important for businesses that fall under the mandatory issuance industry to issue the issuance faithfully so that they do not suffer disadvantages due to the violation of the issuance obligation. Please be sure to obtain an active cash receipt.
First of all, we are waiting for the conversion of Naver Smart Store to a business operator.
On the weekend, go to the National Tax Service Hometax
Business account registration, card registration (both credit and debit cards can be registered),
Registered as a cash receipt merchant. hehe
Somehow, this personal business, especially a one-man company like me,
From one to ten, there are so many things to take care of!
Thanks to that, it is lively and fun, but
Today is the day I think it would be better if there were more people hahahaha
Only one or three people with clone magic??
#Business account registration #Business card #Credit card #Check card #Cash receipt merchant
1) Register a business account
You can do this in the business (public interest corporation) account opening management section here.
After that, you are registered like this! (opened)
Of course, if you do it on the weekend like me, registration will be completed on the business day 🙂
2) Business card registration
It’s my first time getting a credit card too, and since I’ve been issued two, is it possible to have more than one? do
I was curious~ I looked it up and it said it was possible, so I registered it and it was possible haha
It seems that all cards used for business (sales, purchase) can be registered.
3) Cash Receipt Merchant
In the case of a cash receipt merchant, I received a text message from the number 126 and found out.
Apparently, I will not only run the Naver Smart Store but also the Soho Mall Cafe 24 later.
I applied right away because I have a plan.
I made a phone call about this
It is said that there are cases where it is not compulsory depending on where you sell it and what kind of product you are selling.
☞ Cash receipt mandatory issuance industry
If you look at ② in the text, you will see ‘Cash receipts on the site where you are selling’.
Post the compulsory issuance merchant sticker image in a place where consumers can easily identify it
, so it would be better later to post it in a place where it can be seen as much as possible.
After registering, the information of the merchant and the person in charge of the company are registered.
If the cash receipt membership status is ‘F’ and the processing status is ‘approved’, then it is normally approved.
In addition to this, there are always things that need to be dealt with one by one.
I will slowly solve them one by one and upload them 😉
Happy Monday everyone, have a happy start of the week!
▼ You can easily receive a cash receipt by registering a cash receipt with Samsung Pay.
After launching Samsung Pay, select the three-line hamburger menu in the upper left corner and select Membership in the wallet box.
Samsung Pay Card Receipt, Samsung Pay Receipt Reissuance, Check Card Cash Receipt, Cash Receipt Inquiry, Samsung Pay Transportation Card Receipt, Samsung Pay Receipt Card Number, Samsung Pay Usage, Samsung Pay Planner
▼ Click Select from recommended memberships in Add Next Membership.
The cash receipt (National Tax Service) will be shown directly to the recommended membership. Click.
Samsung Pay Card Receipt, Samsung Pay Receipt Reissuance, Check Card Cash Receipt, Cash Receipt Inquiry, Samsung Pay Transportation Card Receipt, Samsung Pay Receipt Card Number, Samsung Pay Usage, Samsung Pay Planner
▼ After agreeing to the required items, select Add to issue a cash receipt (National Tax Service) mobile card.