East Asia
South Korea: tax at a glance
Residents face progressive income tax to 45% (49.5% with local surtax), a newly raised 25% top corporate rate, and inheritance tax up to 50%, among the world's highest.
Ways to relocate to South Korea
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 45% national (49.5% with 10% local surtax)Progressive 6–45% national tax, with the top bracket above KRW 1bn, plus a 10% local income surtax on the national amount.
- Corporate income
- 25% top (27.5% with 10% local surtax)
- Capital gains
- Exempt for small holders of listed shares. Major shareholders and real-estate gains are taxed at 22–27.5%.
- VAT / VAT (부가가치세)
- 10%
- Dividends (WHT)
- 22% (20% + 2% local surtax) for non-residents, and 15.4% for residents.
- Interest (WHT)
- 22% for non-residents, and 15.4% for residents.
- Royalties (WHT)
- 22% (20% + 2% local surtax)
- Social security (employee)
- ~9.4% (pension 4.5% + health + employment + care)
- Social security (employer)
- ~11%+ (pension 4.5% + health + employment + industrial accident)
- Wealth tax
- None, though there is a comprehensive real-estate holding tax on high-value property.
- Inheritance / estate
- 10–50% progressive, with gift tax at the same rates.
- Property tax
- Property tax of 0.1–0.4%, plus a comprehensive real-estate tax on high-value holdings.
- Other
- Local income tax adds a 10% surtax on the national income tax.
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- Yes, leaving has a cost
- CFC rules
- Yes
- CRS
- Participating
A special regime for new arrivals
Foreign residents who have held a domicile in Korea for 5 years or less within the preceding 10 are taxed on foreign-source income only if it is paid in Korea or remitted to Korea. Foreign workers may elect a flat 19% rate, plus local surtax, on employment income for up to 20 years.
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.