Korea uses a progressive corporate income tax rate: 10% (up to 200M KRW), 20% (200M-20B), 22% (20B-300B), and 25% (over 300B KRW). The VAT rate is 10%. Interim returns are due within two months of the six-month period end; annual returns within three months of fiscal year end. Capital gains for corporations are taxed at the normal CIT rate. The Composite Effective Average Tax Rate is 24.87% and the Composite Effective Marginal Tax Rate is 22.0%.
South Korea Tax Brief
Time of Update 4/04/2026
South Korea Corporate Income Tax (CIT)
General CIT Rate:
Progressive: 10% (up to 200M KRW), 20% (200M-20B KRW), 22% (20B-300B KRW), 25% (over 300B KRW)
CIT Return Due Date:
Mid-term tax returns: within two months from the end of the six-month period; annual tax returns: within three months from the end of the fiscal year.
CIT Payment Due Date:
The submission of the declaration form (instalment payments are allowed in the case of elections).
CIT Estimated Payment Due Date:
N/A
South Korea Withholding Tax (WHT)
Resident Withholding Tax (Dividend/Interest/Royalty):
None-Resident Withholding Tax (Dividend/Interest/Royalty):
South Korea Value-Added Tax (VAT)
General VAT Rate:
10
Learn More
South Korea Capital Gain Tax (CGT)
General Capital Gain Tax Rate:
25 (the same as the normal CIT rate for corporations over 300B KRW taxable income)
South Korea Effective Tax Rate (ETR)
Composite Effective Average Tax Rate:
24.87%
Composite Effective Marginal Tax Rate:
22.0%
Additional info
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TKEG Expat South Korea Corporate Tax Guide
Korea Value-added Tax (VAT)
Korea Property Tax
Korea Securities Transaction Tax
Korea Corporate Income Tax (CIT)
Korea Personal Income Tax (PIT)
1.
Korea Value-added Tax (VAT)
In Korea, Value-Added Tax (VAT) is imposed at a rate of 10% on the supply of goods and services. This tax covers various goods and services, including those for exportation, certain eligible services rendered to non-residents, and professional services such as legal, accounting, and management consulting. Some goods are zero-rated, such as basic life necessities and services, and international transportation services. VAT also applies to non-resident companies providing electronic services to consumers in Korea. The requirement for electronic VAT invoicing is strictly enforced, and failure to comply with electronic VAT requirements may lead to significant penalties. Foreign companies providing services through electronic platforms must register for VAT and adhere to filing requirements. This includes maintaining transaction records for five years, particularly in digital marketplaces and intermediary services.
References
https://taxsummaries.pwc.com/republic-of-korea/corporate/other-taxes
2.
Korea Property Tax
Korea levies an annual property tax on the statutory value of various assets, including land, buildings, houses, vessels, and aircraft. The tax rate ranges from 0.07% to 5%, depending on the type of property. Factories that are newly constructed or expanded within designated metropolitan areas receive special attention, with a higher tax rate being applied for the first five years. This tax serves as a local tax, managed by local governments, ensuring that industrial and real estate developments contribute to the local infrastructure and economy.
References
https://taxsummaries.pwc.com/republic-of-korea/corporate/other-taxes
3.
Korea Securities Transaction Tax
Securities Transaction Tax in Korea applies to both listed and unlisted shares. For unlisted shares or interest, a rate of 0.35% is imposed on transfers. For listed shares, the tax rate is 0.23% for shares traded on the Korea Stock Exchange (including a special tax for rural development), 0.18% for shares traded on KOSDAQ, and 0.1% for shares traded on KONEX.
References
https://taxsummaries.pwc.com/republic-of-korea/corporate/other-taxes
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