세금 코드 레퍼런스

Korean income tax uses a progressive rate structure. The brackets range from 6% (for taxable income up to KRW 14 million) up to 45% (for income exceeding KRW 1 billion), with intermediate brackets at 15%, 24%, 35%, 38%, 40%, and 42%. Local income tax of 10% of the national income tax is also applied.

Korean corporate tax rates are progressive: 9% for income up to KRW 200 million, 19% for KRW 200 million to 20 billion, 21% for KRW 20 billion to 300 billion, and 24% for income exceeding KRW 300 billion. Local corporate tax of 10% of the national corporate tax is additionally levied.

Korea applies a standard VAT rate of 10% on most goods and services. Certain items are zero-rated (exports) or exempt (basic food, medical, education services). VAT is filed semi-annually with preliminary returns in April and October. Businesses must register for VAT and issue tax invoices.

Key deadlines include: Year-end settlement for wage earners in February; Comprehensive income tax by May 31; Corporate tax return within 3 months of fiscal year-end; VAT preliminary returns in April and October, final returns in January and July. Specific dates may vary each year.

Major deductions include: basic personal deductions, earned income deduction, insurance premium deduction, medical expense deduction, education expense deduction, donation deduction, housing-related deductions (mortgage interest, monthly rent), credit/debit card spending deduction, and retirement pension contribution deduction. Eligibility and limits vary by item.

Employers withhold estimated income tax from monthly salaries. In January-February, employees submit supporting documents for deductions and credits through the year-end settlement (yeonmal jeongsang) process. The employer recalculates the actual tax liability, and any overpayment is refunded or underpayment is collected. The NTS SimplifiedYear-end Settlement Service helps gather documents.

Freelance and contract income (business income from personal services) is subject to a 3.3% withholding tax (3% national + 0.3% local). The payer must withhold this amount and remit it to the tax authority. Freelancers must file a comprehensive income tax return by May 31 to settle their actual tax liability, which may result in additional tax or a refund.

Foreign residents working in Korea can choose between the regular progressive tax system or a flat rate of 19% on gross employment income (no deductions). The flat rate option is available for the first 5 years of employment in Korea. Foreign workers must also file year-end settlements and may be subject to tax treaty provisions between Korea and their home country.

Housing tax benefits include mortgage interest deduction (up to KRW 3-18 million depending on loan type), monthly rent tax credit (12-17% of rent paid, up to KRW 7.5 million), long-term housing savings deduction, and first-time homebuyer acquisition tax reduction. Eligibility depends on income level, housing size, and homeownership status.

Capital gains on real estate are taxed at progressive rates from 6% to 45%, with additional surcharges for short-term holdings (1 year or less: 70%, 1-2 years: 60%) and multiple property ownership. A 1-household 1-home exemption applies for homes held over 2 years (3 years in certain regulated areas). Detailed rules vary by acquisition date and property type.

Late filing penalties include an additional tax of 20% of the unpaid amount (40% for fraudulent underreporting). Late payment penalties accrue at 0.022% per day. Interest is calculated from the original due date until payment. Voluntary amended returns filed before an audit notice receive reduced penalties. The NTS offers installment payment plans for large amounts.

Yes, this tax code reference is completely free. It is part of liminfo.com's Korean law and policy reference resources. While we strive for accuracy based on the latest tax law revisions, this guide is for informational purposes only. For specific tax situations, consult a certified tax accountant or contact the National Tax Service directly.