While many people including e-commerce sellers and one-person media creators are earning their income directly from international companies with the accelerating 4th Industrial Revolution, a lack of treaties or laws on international taxes leaves tax authorities no option to determine whether taxes are reported correctly or tax income coming from international accounts.

While the person required to report taxes, who earn their income in a transaction with international companies, is taxed when they report their global income voluntarily, some argue that it is necessary to encourage them to report international accounts to ensure transparency in tax reporting if they get paid in international accounts.

In this regard, to ensure taxes are reported correctly by those earning their income from international accounts, this Act aims to impose administrative fines if they fail to comply with reporting obligations and the sum of the balance in international accounts is above 500 million won as under the current Act in an effort to improve tax transparency for international account holders (Article 53 paragraph 1).

Article 53