South Korea
Eastern Asia • UTC+9 • Asia/SeoulSouth Korean Income Tax System
South Korea's tax system is progressive, with rates ranging from 6% to 45% for personal income. Corporate tax is set at 22%, and VAT is 10%.
Income Tax
6%–45%
Progressive rates
Corporate Tax
22%
Standard corporate tax rate
VAT / GST
10%
Standard VAT rate
Nomad Visa
Not Available
No dedicated program
Tax System Overview
South Korea's tax system is progressive, taxing residents on worldwide income and non-residents on Korean-source income. It includes personal income tax, corporate tax, and VAT.
System Type
Progressive personal income tax
Resident Taxation
Residents are taxed on worldwide income.
Non-Resident Taxation
Non-residents are taxed only on Korean-source income.
Tax Year
January 1 – December 31
Income Tax Bands
South Korea's progressive income tax bands based on annual taxable income in KRW (2025).
Tax Treaty
Double Taxation Agreements help reduce withholding taxes and avoid double taxation on income from foreign sources.
United States of America
Treaty ActiveThe treaty between South Korea and the US prevents double taxation on income, reduces withholding taxes on dividends, interest, and royalties, and clarifies tax residency rules.
Key Benefits
Prevents double taxation on income earned in both countries.- Reduced withholding tax on dividends, interest, and royalties.
- Clarifies tax residency to determine where taxes should be paid.
Totalization Agreement
These agreements coordinate social security systems, ensuring workers pay into only one system at a time.
United States of America
Agreement ActiveThe agreement between South Korea and the US prevents workers from paying social security in both countries simultaneously.
Coverage Areas
Facts
- Prevents double taxation of social security contributions for US–South Korea workers.
- Allows workers who split careers between the two countries to combine contribution periods.
Other Countries with Agreements
Business & Freelancing
Corporate Tax Rate
22% standard rate with possible reductions for small businesses
VAT Registration
Mandatory for businesses with annual turnover exceeding ₩30 million.
Freelancer Rules
Freelancers are subject to personal income tax and must register for VAT if applicable.
Crypto Policy
Cryptocurrency gains are taxed as other income, with specific rules for mining and trading.
Frequently Asked Questions
Digital Nomad & Benefits
Visa Details
Tax Perks
- No tax on foreign income for non-residents
- Competitive corporate tax rate for businesses
Filing Roadmap
Register for a Tax Identification Number
Obtain a tax identification number from the National Tax Service if you are a new resident or business.
Gather Income Documentation
Collect all necessary income documents, including employment income, investment income, and any foreign income.
Complete Tax Return
Fill out the appropriate tax return forms, ensuring all income and deductions are accurately reported.
Submit Tax Return
Submit your completed tax return to the National Tax Service by the May 31 deadline.
Pay Any Tax Due
Ensure any taxes owed are paid by the deadline to avoid penalties and interest.