General Taxes in South Korea

Understand what local taxes have to be paid in South Korea, as well as information about inheritance and gift tax…

This section features information on some of the general taxes that must be paid by residents in South Korea. Local taxes are subdivided into provincial and city taxes.

The tax year runs from 1 January to 31 December.

The main taxes other than income tax include:

  • VAT
  • Acquisition tax
  • Inhabitant tax
  • Property tax
  • Automobile tax
  • Urban planning tax
  • Community facility tax
  • Local education tax
  • Local income tax

For the most accurate information on what taxes need to be paid, at what time and at what rate, go to a local National Tax Service office.

Value Added Tax (VAT)

In South Korea VAT is a national tax which is added to the supply of goods and services, as well as imported goods. The current VAT rate is ten percent and is paid at the time of purchase.

The following items are exempt from VAT:

  • Piped water
  • Cultural items - for example books, magazines and newspapers

Local consumption tax, which is five percent of the VAT paid, is also levied on all goods or services subject to VAT.