- Top income tax rate 0 30
- Capital gains tax rate 0 25
- Tax residency threshold (days) not set 365
- Income tax brackets updated
KP
North Korea
Eastern Asia
KPW
KP · PRK · #97 · 9 cities
Nomad score
20/100
Compare
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, so the VAT rate shown is 0%. 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)
- Rate not recorded
- Social security (employer)
- Rate not recorded
- 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). The 365-day residency threshold reflects 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)