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Korea, Republic of Individual - Taxes on personal income

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A taxpayer in Korea, who is liable to pay the income tax on their income, is classified into resident and non-resident for income tax purposes (see the Residence section for more information).

A resident is subject to income tax on all incomes derived from sources both within and outside Korea. Foreign residents who have stayed in Korea for longer than five years during the last ten year period are taxed on their worldwide income. However, foreign residents who have stayed in Korea for five years or less during the last ten year period are taxed on Korea-source income and foreign-source income as well only if the foreign-source income is paid by a Korean entity or transferred to Korea.

A non-resident is subject to income tax only on income derived from sources within Korea. When a non-resident who does not have a domestic place of business has Korea-source income to report through an annual tax return, most of the provisions concerning the tax base and tax amount of residents shall apply to them. However, in calculating taxable income and tax amount, a non-resident is not entitled to claim personal exemptions (except for themselves) and special deductions.

Personal income tax (PIT) rates

Currently, the individual income tax rates on global income range from 6% to 40% before applying the local income tax (approximately 10% of income tax liability). Effective from 1 January 2017, the individual income bracket subject to the top marginal tax rate of 40%, excluding local income tax, is adjusted to taxable income in excess of KRW 500 million.

The following tax table summarises the basic global income tax rates applicable for the income received from 1 January 2017 and thereafter.

Annual taxable income (KRW thousands) Tax rate *
Over (column 1) Less than Tax on column 1 *  Marginal tax rate (%)
0 12,000     0 6
12,000 46,000 720 15
46,000 88,000 5,820 24
88,000 150,000 15,900 35
150,000 500,000 37,600 38
500,000   170,600 40

* Before applying the local income tax.

Local income tax 

Besides the above PIT, there is also a local income tax that is assessed at a rate of 10% of the PIT rates.

  • PIT is paid to the National Tax Service (NTS).
  • Local income tax is paid to the city or the province that is the domicile of the taxpayer.
Annual taxable income (KRW thousands) Tax rate *
Over (column 1) Less than Tax on column 1 * Marginal tax rate (%)
0 12,000 0 0.6
12,000 46,000 72 1.5
46,000 88,000 582 2.4
88,000 150,000 1,590 3.5
150,000 500,000 3,760 3.8
500,000   17,060 4.0

* Before applying the local income tax.

Alternative minimum tax (AMT)

The AMT, with exceptions, will be calculated at the greater of 35% of income tax liability before exemptions or actual tax after exemptions.

The AMT is applied to business income of a resident individual and Korean-source business income of a non-resident individual, but it is not applied to employment income.


Last Reviewed - 17 August 2017

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