Today's Invest Guide : National Tax 

National Tax

National tax refers to tax imposed on and collected from people

by the government to cover its expenditure.

National tax is collected by the National Tax Service(tax office) and the Korea Customs Service(customs office) to finance the central government.

Corporate Tax


Corporate tax covers three taxable types: Income for each business year,

liquidation income, and capital gains from land, etc.

The profit for each business year refers to the total income from each year of the corporation with losses deducted. Liquidation income refers to the amount the residual asset value exceeds the total sum of equity upon dissolution of a corporation. Capital gains from land etc. is an additional taxation on gains accruing from the transfer margin of designated properties, non-business purpose land, and real estate experiencing rapid price fluctuations, for the purpose of suppressing damaging speculation.

Income Tax

It is comprised of aggregate income,

retirement income and assignment income.


Aggregate Income : An aggregate income is the sum of 7 incomes such as

interest income, dividend income, real estate leasing income,

business income, earned income, pension income and other incomes.

Any necessary expense and income deduction, etc. are deducted from

these income amounts. The tax base of the deducted aggregate income is calculated. Tax is imposed on the deducted incomes by

applying the aggregate tax rate of 6~35%

Value-added Tax

A value-added tax (VAT) is a tax to impose on the additional value

which is produced in each step of production and circulation.

Principally, it is a common consumption tax to impose on

the consumption of all products or services. Simultaneously it is a kind of

indirect tax which expects the transfer of tax burden.

It takes multi-step taxation method to impose on additional values generated in each transactional step. The VAT is comprised of

general tax payer and simple tax payer.

Different taxation systems are applied as follows.

Securities transaction Tax

Refers to a tax imposed on the transfer of securities or shares However,

transferred shares listed on the securities market in accordance with

the Securities and Exchange Act to a guarantor in order to

Represent shares on foreign securities markets are exempt from taxation.

However, non-taxable transfers are approved for central or

local government transferring shares.