East Asia
North Korea: tax at a glance
A centrally planned economy with no conventional tax system for citizens, abolished in 1974. Foreign-invested enterprises are taxed under a separate legal regime.
Worldwide (residence-based)
Last verified July 2026Some figures indicative
The taxes
- Personal income (top)
- None
- Corporate income
- 25%
- Capital gains
- Included in enterprise income for foreign-invested entities.
- VAT / Turnover tax
- None
- Dividends (WHT)
- 10%
- Interest (WHT)
- 10%
- Royalties (WHT)
- 10%
- Social security (employee)
- None
- Social security (employer)
- None
- Wealth tax
- None
- Inheritance / estate
- None
- Property tax
- Not applicable in the conventional sense.
- Other
- Foreign-invested enterprises are taxed at 25%, with reduced rates in special economic zones such as Rason. UN Security Council sanctions restrict essentially all investment.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
- Special regime
- Special economic zones: reduced enterprise tax for foreign-invested entities, subject to UN sanctions
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.
Sources (1)
Frequently asked
What is the income tax rate in North Korea?
The top marginal personal income tax rate in North Korea is None. There is no general personal income tax on citizens. Taxation was formally abolished in 1974 and replaced by state extraction of enterprise surplus.
What is the corporate tax rate in North Korea?
The headline corporate income tax rate is 25%.
Does North Korea tax capital gains?
Capital gains for individuals: Included in enterprise income for foreign-invested entities..