Asia-Pacific · Tax guide

South Korea

South Korea taxes company profits in four brackets — 10% up to ₩200 million, 20% up to ₩20 billion, 22% up to ₩300 billion and 25% above — plus a local income tax surcharge, charges VAT at 10%, and applies the global minimum tax. Taxes are administered by the National Tax Service (NTS).

Updated 1 October 2026 · 8 of 9 figures checked against official sources

Check your obligations

At a glance

Local income tax
10%

Surcharge on the corporate tax

VAT
10%

Single standard rate

Simplified VAT
₩104,000,000

Annual sales limit for individuals

Withholding on payments abroad
22%

Including local tax; before treaty relief

Acquisition tax
about 4.6% (including surtaxes)

On commercial property

Global minimum tax
15%

Groups with revenue of €750 million or more

Corporate tax

Corporate tax is charged in brackets — 10% up to ₩200 million, 20% up to ₩20 billion, 22% up to ₩300 billion and 25% above — and a local income tax of 10% of the corporate tax is added. Returns are due three months after the year-end, with an interim payment halfway through the year.

VAT

VAT is charged at 10%. Most businesses file every six months with preliminary returns in between. Individuals with annual sales below ₩104,000,000 can be simplified taxpayers. Electronic tax invoices are mandatory for corporations and larger individual businesses.

Withholding tax on payments abroad

Dividends, interest and royalties paid to non-residents carry 22% withholding including local tax, reduced by treaty when the beneficial owner provides the application form.

Transfer pricing, property and the global minimum tax

Related-party transactions must be at arm's length. A combined master and local file report is required with cross-border related-party transactions above ₩50 billion and revenue above ₩100 billion. Groups with revenue of €750 million or more are subject to the global minimum tax at 15%.

Buyers of commercial property pay acquisition tax of about 4.6% (including surtaxes).

Key dates

  • January and July (25th)VAT returns (with preliminary returns in April and October)
  • Three months after the year-endCorporate tax return
  • By the 10th of each monthWithholding tax returns

Figures and sources

9 figures
  • 2026 corporate tax brackets (each raised by one point)10% up to ₩200 million, 20% up to ₩20 billion, 22% up to ₩300 billion and 25% above
    Corporate Tax Act (2026 amendment) · Art. 55
    Checked against the official source
  • VAT rate10%
    Value-Added Tax Act · Art. 30
    Checked against the official source
  • Local income tax surcharge on corporate tax10%
    Local Tax Act
    Under professional review
  • Annual sales below which an individual can be a simplified VAT taxpayer₩104,000,000
    Value-Added Tax Act · Art. 61
    Checked against the official source
  • Withholding on dividends, interest and royalties to non-residents, including local tax (before treaty relief)22%
    Corporate Tax Act · Art. 98
    Checked against the official source
  • Acquisition tax on commercial propertyabout 4.6% (including surtaxes)
    Local Tax Act · Art. 11
    Checked against the official source
  • Global minimum tax rate15%
    Adjustment of International Taxes Act (global minimum tax) · Art. 61
    Checked against the official source
  • Group revenue for the global minimum tax€750 million
    Adjustment of International Taxes Act (global minimum tax)
    Checked against the official source
  • Thresholds for the combined master and local file reportcross-border related-party transactions above ₩50 billion and revenue above ₩100 billion
    Adjustment of International Taxes Act · Art. 16
    Checked against the official source

Indicative only. This assessment is a high-level overview of tax obligations in South Korea based on the information you provided and rules in force for 2026. It is not tax or legal advice. Consult a Korean certified tax accountant before making compliance decisions.