Top income tax
45.0%
effective 49.5%
Corporate tax
25.0%
VAT
10.0%
standard rate
Tax residency
183 days
93 tax treaties
South Korea tax profile
Data year: 2026
- Tax system
- Worldwide Worldwide income taxation for residents. Non-residents taxed on Korean-sourced income only. Foreign employees may elect flat 19% tax on gross Korean-sourced employment income for first 5 years.
- 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 2+ years (same as income tax brackets). Short-term gains (1-2 years) taxed at 60%, under 1 year at 70%. Stocks: major shareholders or over-threshold gains taxed at 20% (25% above KRW 300M). General investors exempt on listed shares until 2025.
- Social security (employee)
- 9.0%
- Social security (employer)
- 9.0%
- Dividend withholding
- 20.0%
- Interest withholding
- 20.0%
- Royalty withholding
- 20.0%
- Inheritance tax
- 50.0%
- Treaty count
- 93
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% |
Tax flags
Crypto Rules
Tax residency
- Days threshold
- 183 days
- Residency rules
- Tax resident if has domicile in Korea for 183 days or more, or has lived in Korea for 183 days or more. Determined by center of vital interests.
- Exit tax
- No
- CFC rules
- Yes
Filing information
- Fiscal year
- 01-01 – 12-31
- Filing deadline
- May 31
Sources
- KPMG Korea 2026 tax changes (accessed May 3, 2026)
- PwC Republic of Korea CIT (accessed May 3, 2026)
- PwC Worldwide Tax Summaries - South Korea (accessed Mar 23, 2026) PIT, CIT, VAT, withholding rates