Korea’s taxation system has supported fiscal policies for achieving the central or local governments’ economic development plans. As of October, 2015, the system largely consists of national tax and local tax.
National tax refers to tax imposed on and collected from people by the government to cover its expenditure. National taxes are collected by the National Tax Service(tax office) and the Korea Customs Service(customs office) to finance the central government.
- Income Tax
- Corporate Tax
- Value Added Tax
- Customs Duty
Basic tax rate on corporate income as of January 2019
|Basic tax rates|
|Tax Base||Tax Rate|
|200 million won or less||10%|
More than 200 million won but
not exceeding 20 billion won
|20 million won + amount in excess of 200 million won * 20%|
More than 20 billion won but
not exceeding 300 billion won
|3,980 million won + amount in excess of 20 billion won * 22%|
|Exceeding 300 billion won||65.58 billion won + amount in excess of 300 billion won * 25%|
※ Corporate local income tax equivalent to approximately 10 percent of the corporate income tax is imposed.
Basic Tax Rate on Composite Income
|Tax Base||Tax Rate|
|Up to 12 mln won||6%|
|Over 12 mln won up to 46 mln won||720,000 won + amount exceeding12 mln won X 15%|
|Over 46mln won and up to 88 mln won||5.82 mln won + amount exceeding 46 mln won X 24%|
|Over 8,8mln won and up to 150 mln won||15.9 mln won + amount exceeding 88 mln won X 35%|
|Over 150 mln won and up to 300 mln won||37.6 mln won + amount exceeding 150 mln won X 38%|
|Over 300 mln won and up to 500 mln won||94.6 mln won + amount exceeding 300 mln won X 40%|
|Over 500 mln won||174.6 mln won + amount exceeding 500 mln won X 42%|
※ Personal local income tax equivalent to approximately 10 percent of the composite income tax is imposed.
Local tax is imposed by local governments on its residents, property or profit, or specific activities in the area under the jurisdiction, as prescribed by the Local Tax Act.
- Acquisition Tax
- Registration and
- Resident Tax
- Local Income
- Property Tax
- KIM Min-kyung Executive Consultant
- NTS(National Tax Service)
- LEE Jeung Ok Senior Officer