South Korea
Top Income Tax
45%
Marginal rate
Corporate Tax
24%
Standard rate
VAT / Sales Tax
10%
Standard rate
Capital Gains
22%
Standard rate
Overview
South Korea offers a flat 19% tax option for foreign workers that can significantly reduce taxes compared to the progressive system. Seoul is a vibrant tech hub, home to Samsung, LG, and a thriving startup ecosystem. The K-Visa provides digital nomad opportunities.
Income Tax Brackets
| Income Range (KRW) | Tax Rate |
|---|---|
| 0 - 14,000,000 | 6% |
| 14,000,000 - 50,000,000 | 15% |
| 50,000,000 - 88,000,000 | 24% |
| 88,000,000 - 150,000,000 | 35% |
| 150,000,000 - 300,000,000 | 38% |
| 300,000,000 - 500,000,000 | 40% |
| 500,000,000 - 1,000,000,000 | 42% |
| 1,000,000,000+ | 45% |
Plus local income tax of 10% of national tax. Effective top rate ~49.5%.
Corporate Tax
Standard Rate
24%
Graduated: 9% up to 200M KRW, 19% up to 20B, 21% up to 300B, 24% above. Plus 10% local surcharge.
VAT / Sales Tax
Standard Rate
10%
10% flat rate. Essential goods exempt.
Capital Gains Tax
Standard Rate
22%
22% on most gains. Residential property: 6-45% depending on holding period and number of homes.
Social Security Contributions
Employee
9.4%
Employer
10.1%
Self-Employed
19.5%
National Pension 4.5% each, Health 3.545% each, Employment 0.9/1.15%.
Special Tax Regimes
Flat Tax for Foreign Workers
19% flat tax rate on gross salary for up to 5 years.
Eligibility: Foreign nationals starting employment in Korea. Can opt for flat 19% instead of progressive rates.
Digital Nomad Visa
Workcation (K-Visa) launched 2024. For remote workers from qualifying countries. Valid up to 2 years.
Pros & Cons
Pros
- 19% flat tax option for foreign workers
- World-class technology infrastructure
- Vibrant startup ecosystem
- K-Visa for digital nomads
Cons
- High progressive tax rates (up to 49.5%)
- Complex regulations
- High property taxes
- Language barrier
- Mandatory military service for male citizens
Living Indicators
Cost of Living Index
Above average
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for South Korea is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- South Korea government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.