Taxation

한국공인회계사회
  • 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%.