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Korea, Republic of Corporate - Other taxes

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Value-added tax (VAT)

VAT is levied at a rate of 10% on the supply of goods and services, except zero-rated VAT on certain supply of goods and services (e.g. goods for exportation, certain eligible services rendered to non-residents earning foreign currency, international transportation service by ships and aircraft) and exemption on certain goods and services (e.g. basic life necessities and services, such as unprocessed foodstuffs and agricultural products; medical and health services; finance and insurance services; duty-exempt goods).

Electronic VAT invoicing is a compulsory requirement. If a taxpayer fails to issue the electronic VAT invoice or report electronically to tax authorities, the relevant penalties shall be imposed.

Customs duties

Customs duties are generally assessed on imported goods. ‘Importation’ refers to the delivery of goods into Korea (in case of goods passing through a bonded area, delivery of such goods into Korea from such a bonded area) to be consumed or to be used in Korea.

Property tax

An annual property tax ranging from 0.07% to 5% is charged on the statutory value of land, buildings, houses, vessels, and aircraft. Five times the property tax rate is applied to factories that are newly constructed or expanded in a designated metropolitan area for the first five years.

Securities transaction tax

Securities transaction tax (at the rate of 0.5% for unlisted shares or interest) is imposed on the transfer of shares or interest, but the government is authorised to adjust the tax rate in certain circumstances. The flexible tax rate prescribed by the Presidential Decree is 0.15% for shares traded on the Korea Stock Exchange and 0.3% for shares traded on the Korean Securities Dealers Automated Quotations (KOSDAQ) or the Korea New Exchange (KONEX).

Acquisition tax

Acquisition tax is charged on the price of real estate, motor vehicles, construction equipment, golf membership, boats, etc. The acquisition tax rate varies depending on the type of assets subject to the tax, ranging from 2% to 7%. A weighted rate is charged on acquisitions in a designated metropolitan area or on acquisition of luxury items, such as villas, golf courses, and yachts.

Stamp tax

Stamp tax is levied on a person who prepares a document certifying establishment, transfer, or change of rights to property in Korea. The stamp tax ranges from KRW 50 to KRW 350,000, depending on the type of taxable document. The electronic stamp system has been implemented to make it mandatory to use stamps bought online rather than paper stamps bought in banks or post offices.

Registration tax

Registration tax ranging from 0.02% to 5% is charged upon the act of registering the creation, alteration, or lapse of property rights or other titles and incorporation with the concerned authorities. Registration tax upon the registration of title or right and incorporation for corporations located in a designated metropolitan area may be subject to three times the normal rate of 0.4%.

Gift tax

Gift tax is imposed on a person who acquires property by gift. If CIT or individual income tax is imposed on the gifted property, however, the gift tax shall not be imposed. Gift tax ranges from 10% on not more than KRW 100 million in tax base to the top marginal tax rate of 50%.

Payroll taxes

Employers are required to withhold income taxes at source on a monthly basis, finalise their employees' tax liability, and file the final tax settlement receipt with the tax authorities no later than the tenth day of March of the following year.

Social security contributions

There are four types of social security contributions in Korea, namely national pension, national health insurance, employment insurance, and worker’s accident compensation insurance. Employers and employees are almost equally required to bear a total amount of 8.41% of salaries for the first three types of social security taxes (i.e. national pension, national health insurance, and employment insurance), while the worker's accident compensation insurance is borne by employers only, which varies by industry, ranging from 0.7% (banking, insurance) to 34% (coal mining) of salaries.


Last Reviewed - 17 August 2017

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