๐ฐ๐ท Corporate Tax in South Korea
Headline rate: 9โ24% (progressive)
Limited Liability Company (YH)
A Yuhan Hoesa is taxed as a corporation under Korean tax law. The corporate income tax rates are progressive: 9% on the first KRW 200 million, 19% on income from KRW 200 million to KRW 20 billion, 21% on income from KRW 20 billion to KRW 300 billion, and 24% on income exceeding KRW 300 billion. Local income tax of 10% of the national tax liability is added. Dividends paid to non-resident shareholders are subject to 20% withholding tax (or a reduced rate under an applicable double tax treaty). VAT is charged at 10% on most goods and services.
Stock Corporation (CH)
A Chusik Hoesa is subject to the same progressive corporate income tax rates as a Yuhan Hoesa: 9% on the first KRW 200 million, 19% on KRW 200 million to KRW 20 billion, 21% on KRW 20 billion to KRW 300 billion, and 24% above KRW 300 billion. Local income tax at 10% of the national liability is also levied. Korea offers various tax incentives for foreign-invested enterprises, including tax reductions or exemptions for investments in designated high-technology industries, free economic zones, and industrial complexes. Withholding tax on dividends to non-residents is 20% (reduced under treaties). Capital gains on the sale of shares by non-residents are generally subject to the lower of 20% of the gross sale price or the applicable corporate tax rate on the net gain.
Key Facts
- Double tax treaties: 93
- Memberships: G20, OECD, WTO, APEC, UN
- Legal system: Civil law (influenced by German and Japanese systems)
- Fiscal year: Company chooses (most use JanuaryโDecember)
This content is educational and does not constitute legal or tax advice. Always consult a qualified professional for your specific situation. Data last verified March 2026.