Korea, Republic of


Last reviewed - 27 June 2023

Located between China and Japan, Korea is the centre of aviation and maritime logistics connecting the Asia-Pacific region, as well as Eurasia and the Americas. The Republic of Korea (South Korea or Korea) is divided into nine provinces, with Seoul as the capital. The official language of South Korea is Korean, and the currency is the won (KRW).

Since the 1960s, South Korea has achieved an incredible record of growth and global integration to become a high-tech industrialised economy. In 2006, South Korea joined the trillion-dollar club of world economies. In 2022, Korea has the tenth largest economy in the world by gross domestic product (GDP) according to the World Bank. Korea’s economic fundamentals are solid, with its trade volume ranked ninth in the world as of 2020. Initially, a system of close government and business ties, including directed credit and import restrictions, made this success possible. The government promoted the import of raw materials and technology at the expense of consumer goods and encouraged savings and investment over consumption. Korea adopted numerous economic reforms following the global crisis, including greater openness to foreign investment and imports.

More recently, the Korean government’s policy has focused on expanding investment and strengthening digital infrastructure in the country through its Digital New Deal policy. According to the World Economic Forum (WEF), the dissemination of information and communication technologies (ICT) in Korea has ranked first in the world. Korea succeeded in commercialising the world’s first 5G network (April 2019), proving that the country is a global leader in the ICT field. Growth for 2019 was recorded at 2.2% by real GDP.  During 2020, it recorded a negative growth rate of -0.7% due to the economic crisis caused by the COVID-19 pandemic. During 2021, the Korean economy bounced back at the growth rate of 4.0% and is estimated to grow 2.5% in 2022.  South Korea’s per capita income was 28.4 times the level of North Korea in 2021.

Samil PwC has over 3,300 devoted professionals, with approximately 720 dedicated tax professionals and the largest tax practice in Korea. Our multidisciplinary team of tax professionals includes experts with tax, accounting, law, economics, and finance backgrounds. We also have tax advisers and experts who previously worked for various governmental bodies in the areas of national tax, customs, and local tax administration. Our senior professionals also regularly assist the Ministry of Economy and Finance and the National Tax Service in establishing tax policies and implementing the relevant regulations.

Samil PwC has dedicated teams of professionals specialised in transfer pricing, global tax structuring, customs and international trade consulting, tax controversy and dispute resolution, private equity tax, and tax managed services, as well as people and organisation services. Industry-focused and product-specialised teams with deep expert knowledge, experience, and know-how are the true hallmarks of Samil PwC's Tax Practice.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)


Corporate income tax (CIT) due dates
CIT return due date

Interim tax return: within two months from the end of the interim six-month period;

Annual tax return: within three months from the end of the fiscal year.

CIT final payment due date

Along with the filing of the returns (payment in instalments is allowed in case of election).

CIT estimated payment due dates


Personal income tax (PIT) rates
Headline PIT rate (%)


Personal income tax (PIT) due dates
PIT return due date

31 May

PIT final payment due date

31 May (payment in instalments is allowed in case of election)

PIT estimated payment due dates


Value-added tax (VAT) rates
Standard VAT rate (%)


Withholding tax (WHT) rates
WHT rates (%) (Dividends/Interest/Royalties)

Resident corporation (individual): 0 (14% for individual, 14% for distribution of profit from securities investment trusts to corporation) / 14 (14% for individual, 25% for interest from a non-commercial loan) / 0 (20% for individual);

Non-resident: 20 / 20 (14% for interest derived from bonds issued by domestic corp.'s, etc.) / 20

Capital gains tax (CGT) rates
Headline corporate capital gains tax rate (%)

24 (same as the normal CIT rates).

Headline individual capital gains tax rate (%)

45 for registered real property (varying depending on the type of asset, holding period, etc.)

Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)


Inheritance and gift tax rates
Headline inheritance tax rate (%)


Headline gift tax rate (%)


NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.