2023 Korean Corporate Income Tax Brackets

A tax is imposed on net taxable income in Korea by the district tax office, and cities (or “gu” for large cities). In Korea, a tax payable to the district tax office is called “income” tax (소득세). A tax payable to cities is called “resident” tax (지방세). For most of cases, 10% resident tax will be levied additionally to the income tax.

There are four tax brackets for corporate taxable income in Korea: 9%, 19%, 21% and 24%. The calculation itself is not complicated, as long as the net taxable income amount is accurate.

Corporate Tax Rates Lowered from 2023 in Korea

Tax Base
(KRW in millions)
Tax Rate (2018-2022) Tax Rate (Fr 2023)
Up to 200 10% 9%
200 – 20,000 20% 19%
20,000 – 300,000 22% 21%
Above 300,000 25% 24%

*For small to medium-sized companies, 10% CITR is applicable to a tax base up to 500 million Korean won.

Example Tax Computation

Income tax for the tax year 2023:

  • Company in Seoul qualified as a small or medium-sized company had a adjusted net taxable income of W500,000,000 for FY2023.
  • No loss carry-forwarded from previous years.
  • No tax exemptions/credits applicable.
  • Total income tax is W50,000,000 (W500,000,000 x 10%).
  • Resident tax is approx. W5,000,000.

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