- Brackets updated
- Special regimes updated
migrated from the production database; research reasoning not recorded.
Top income tax
45.0%
effective 49.5%
Corporate tax
25.0%
VAT
10.0%
standard rate
Tax residency
183 days
97 tax treaties
South Korea tax profile
Data year: 2026
- Tax system
- Worldwide Worldwide income taxation for residents. Non-residents are taxed on Korean-source income only. Foreign employees may elect a flat 19% national tax on employment income (plus 10% local surtax on that tax) for up to 20 years from their first day of work in Korea.
- Top PIT rate
- 45.0% (eff. 49.5%)
- Corporate tax rate
- 25.0%
- VAT
- 10.0%
- Capital gains tax
- 20.0% Real estate: basic rate 6–45% for properties held two years or more (aligned with income tax brackets). Short-term gains (one to two years) taxed at 60%; under one year at 70%. Listed shares: exchange trades by non-major shareholders are generally exempt; major shareholders (ownership or KRW 5 billion market-value tests) face 20–25% national rates (higher for short holding). Unlisted shares and off-exchange listed sales are generally taxable.
- Social security (employee)
- 9.7%
- Social security (employer)
- 10.2%
- Dividend withholding
- 20.0%
- Interest withholding
- 20.0%
- Royalty withholding
- 20.0%
- Inheritance tax
- 50.0%
- Treaty count
- 97
Income tax brackets
Corporate
| Bracket min | Bracket max | Rate |
|---|---|---|
| KRW 0 | KRW 200,000,000 | 10.0% |
| KRW 200,000,000 | KRW 20,000,000,000 | 20.0% |
| KRW 20,000,000,000 | KRW 300,000,000,000 | 22.0% |
| KRW 300,000,000,000 | and above | 25.0% |
Personal income
| Bracket min | Bracket max | Rate |
|---|---|---|
| KRW 0 | KRW 14,000,000 | 6.0% |
| KRW 14,000,000 | KRW 50,000,000 | 15.0% |
| KRW 50,000,000 | KRW 88,000,000 | 24.0% |
| KRW 88,000,000 | KRW 150,000,000 | 35.0% |
| KRW 150,000,000 | KRW 300,000,000 | 38.0% |
| KRW 300,000,000 | KRW 500,000,000 | 40.0% |
| KRW 500,000,000 | KRW 1,000,000,000 | 42.0% |
| KRW 1,000,000,000 | and above | 45.0% |
Special regimes (1)
| Name | Rate/amount | Duration | Status |
|---|---|---|---|
| Foreign employee flat tax rate Optional 19% national rate on employment income instead of progressive PIT; loca... | 19.0% | 20yr | Active |
Tax flags
Crypto Rules
Tax residency
- Days threshold
- 183 days
- Residency rules
- Resident if domiciled in Korea, present 183 days or more in the tax year, or (from tax years beginning 1 January 2026) present 183 consecutive days spanning two tax years. Facts-and-circumstances tests (family, assets, occupation) can also establish residence. Treaty tie-breakers apply for dual residents.
- Exit tax
- Yes Applies when a long-term resident emigrates, including deemed disposal of domestic listed shares for qualifying large shareholders (five-year residency test). Foreign shares are scheduled to enter the regime from 1 January 2027 with exclusions for smaller holdings and certain departing foreign employees.
- CFC rules
- Yes Undistributed earnings of foreign corporations owned at least 10% by Korean residents are deemed dividends when the subsidiary’s three-year average effective tax rate is 17.5% or less (70% of the 25% top CIT rate from 2026). Substantive business and passive-income exceptions apply.
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- May 31
Sources
- National Tax Service — 종합소득세 세율 (accessed Oct 9, 2026) PIT bracket schedule (2023 onwards, unchanged for 2026)
- PwC Worldwide Tax Summaries — South Korea (accessed Oct 9, 2026) Headline rates, VAT, withholding, residency, social security, exit tax
- PwC Republic of Korea — Taxes on personal income (accessed Oct 9, 2026) PIT brackets and 10% local income tax surcharge
- PwC Republic of Korea — Taxes on corporate income (accessed Oct 9, 2026) CIT brackets effective from 1 January 2026
- PwC Republic of Korea — Foreign tax relief and tax treaties (accessed Oct 9, 2026) 97 income tax treaties as of January 2026
- KPMG Korea 2026 tax changes (accessed May 3, 2026) 2026 CIT bracket increase cross-check