- Top income tax rate 0 30
- Capital gains tax rate 0 25
- Residency days threshold none 365
- Brackets updated
migrated from the production database; research reasoning not recorded.
Top income tax
30.0%
Territorial system
Corporate tax
25.0%
VAT/GST
None
standard rate
Tax residency
365 days
9 tax treaties
North Korea tax profile
Data year: 2026
- Tax system
- Territorial The domestic planned economy does not run a conventional income tax on DPRK citizens (income tax for citizens was abolished in 1974). Foreign-invested businesses and foreign individuals earning in the DPRK are taxed under the Law on Foreign-Invested Business and Foreign Individual Tax (last amended 2002, published via WIPO Lex). Enterprise income tax is 25% of net profit outside special zones, 14% in the Rason economic and trade zone, and 10% in listed priority sectors (advanced technology, natural resources, infrastructure, R&D). Production-sector foreign investors also face turnover tax (1–15% of sales, up to 50% on restricted luxuries) and service or construction investors pay business tax (2–10% of relevant income). There is no general VAT; `vat_gst_rate` 0 reflects that. Domestic state-owned enterprises remit profit to the state rather than paying corporate income tax in the ordinary sense.
- Top PIT rate
- 30.0%
- Corporate tax rate
- 25.0%
- VAT/GST
- No VAT/GST
- Capital gains tax
- 25.0% Foreign individuals pay personal income tax at 25% on proceeds from the sale of assets (law art. 19; regulations art. 38). Foreign enterprises pay enterprise income tax on business profits; passive DPRK-source items such as dividends, interest, rent and royalties are taxed at 20% (10% in Rason) under art. 10, distinct from the 25% business-profits rate.
- Social security (employee)
- --
- Social security (employer)
- --
- Dividend withholding
- 20.0%
- Interest withholding
- 20.0%
- Royalty withholding
- 20.0%
- Inheritance tax
- 30.0%
- Treaty count
- 9
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| KPW 0 | and above | 25.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| KPW 0 | and above | 30.0% |
Tax flags
Territorial Exemption
Tax residency
- Days threshold
- 365 days
- Residency rules
- Foreign individuals pay personal income tax on DPRK-source income. A foreign individual who stays or resides in the DPRK for more than one year must also pay personal income tax on earnings from outside the DPRK (law art. 17). `residency_days_threshold` 365 captures that worldwide trigger for foreign individuals; shorter stays are generally taxed on DPRK-source income only. Treaty relief may apply where a double-taxation agreement is in force (art. 7).
- Exit tax
- No
- CFC rules
- No
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- Within 2 months after calendar year-end (foreign-invested enterprises)
Sources
- DPRK Law on Foreign-Invested Business and Foreign Individual Tax (accessed Oct 9, 2026) Enterprise income tax 25%/14%/10%; foreign individual PIT; turnover and business tax; inheritance tax
- DPRK Implementation Regulations (Foreign-Invested Business and Foreign Individual Tax) (accessed Oct 9, 2026) Enterprise income tax rates; foreign individual PIT categories and 20%/25% rates; filing mechanics
- FindLaw — Foreign Investment Laws of North Korea (accessed Oct 9, 2026) Cross-check of enterprise income tax and foreign individual tax (secondary summary)