KICPA

Overview of Korean Tax System
Korean taxes are categorized as national and local taxes depending on the applicable tax imposed and collected.
National taxes are divided into internal taxes, customs duties, and three earmarked taxes: The internal taxes are classified into direct and indirect taxes. For example, the Income Tax, Corporation Tax, Inheritance Tax and Gift Tax are representative direct taxes, while the Value-Added Tax and Individual Consumption Tax, etc. are indirect ones.
Local taxes are divided into province and city & county taxes according to the jurisdiction of the respective governmental bodies to impose taxes.
For details of Korean taxation, please visit the National Tax Service website.

Major Tax and Tax Rates
Corporation Tax
Domestic and foreign corporations having earned income in Korea are subject to taxation on: 1) taxable income of each fiscal year; 2) gains on liquidation; and 3) capital gains from the transfer of assets including land.

Corporation Tax
Tax Base	Tax Rate
Less than KRW 200 million	10% of the tax base
In excess of KRW 200 million and less than KRW 20 billion	KRW 20 million + the amount exceeding KRW 200 millionⅹ20%
In excess of KRW 20 billion	KRW 3.98 billion + the amount exceeding 20 billion wonⅹ22%

(Note) Inhabitant surtax of 10% on corporation tax
Income Tax
Residents and non-residents having earned income in Korea are subject to taxation.

Income Tax
Tax Base	Tax Rate
Less than KRW 12 million	6% of the tax
In excess of KRW 12 million and less than KRW 46 million	KRW 720,000 + the amount exceeding KRW 12 millionⅹ15%
In excess of KRW 46 million and less than KRW 88 million	KRW 5.82 million + the amount exceeding KRW 46 millionⅹ24%
In excess of KRW 88 million and less than KRW 300 million	KRW 15.9 million _ the amount exceeding KRW 88 millionⅹ35%
In excess of KRW 300 million	KRW 90.1 million + the amount exceeding KRW 300 millionⅹ38%

(Note) Inhabitant surtax of 10% on income tax
Value Added Tax (VAT)
VAT is levied on: 1) the provision of goods or services; and 2) transaction of imported goods at the tax rate of 10%.

한국공인회계사회