Tax
Progressive income tax to 45 per cent with a local surtax on top
Personal income tax rises to 45 per cent, and a local income tax of 10 per cent of the national liability applies in addition. Corporate rates are graduated by income band.
Key rules
- Jurisdiction — Administered by the National Tax Service. Residence turns on 183 days or a domicile in Korea.
- Deadline — Individual global income return in May following the tax year
- Deadline — Corporate return within three months of the fiscal year end
- Deadline — VAT returns quarterly
Governing law
- Income Tax Act
- Corporate Tax Act
- Value-Added Tax Act
- Inheritance and Gift Tax Act
In practice
Foreign workers may elect a flat 19 per cent rate on employment income in place of progressive rates, which suits high earners with few deductions. Corporate tax runs from 9 per cent on the first tranche up to 24 per cent for the largest companies, plus local surtax. VAT is a flat 10 per cent. Inheritance tax reaches 50 per cent and is among the highest in the OECD, with a further premium on transfers of controlling shareholdings, which drives much succession planning for family-controlled groups.