Tax and compliance in South Korea

Snapshot

A business in South Korea registers with the tax office and receives a business registration certificate, which underpins tax filing, invoicing, and opening a corporate account. The standard VAT rate is 10 percent, with zero rating for exports. Corporate income tax is charged at progressive rates with a local income tax added on top. Tax is administered by the National Tax Service.

Registration: Business registration certificate from the tax office
VAT: Standard rate 10 percent, exports often zero rated
Corporate tax: Progressive rates plus a local income tax
Administered by: The National Tax Service

Information as of 12 March 2026Last reviewed 12 March 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

A business in South Korea registers with the tax office and receives a business registration certificate, which it uses for tax filing, invoicing, and opening a corporate account. The standard VAT rate is 10 percent as of 12 March 2026, with zero rating for exports and certain international services, and VAT registered businesses file periodic VAT returns. Corporate income tax is charged at progressive rates that rise with taxable income, and a local income tax is added on top, broadly around 10 percent of the corporate income tax. The National Tax Service administers business tax. Rates and thresholds change, so confirm the current figures with the National Tax Service or a tax adviser.

Business registration and tax

A company in South Korea registers with the tax office shortly after it starts activity and receives a business registration certificate. This certificate is central to running the business, because it underpins tax invoicing and filing, and banks ask for it when opening a corporate account. Keeping the registered details, including the bank account on file, accurate matters for both tax and banking, as of 12 March 2026. Confirm the registration steps with the National Tax Service or a local adviser.

VAT

The standard VAT rate in South Korea is 10 percent, as of 12 March 2026. Exports and certain qualifying international services can be zero rated, and some supplies such as financial, medical, and educational services are exempt. VAT registered businesses charge VAT on taxable sales, reclaim input VAT where allowed, and file periodic VAT returns. Confirm your VAT registration position and filing dates with the National Tax Service or a tax adviser, because thresholds and rules change.

Corporate income tax

Corporate income tax is charged at progressive rates that rise with taxable income, and a local income tax is added on top, broadly around 10 percent of the corporate income tax, as of 12 March 2026. Companies file an annual corporate tax return and may make interim payments during the year. Rates and brackets change between budgets, so confirm the current figures with the National Tax Service or a tax adviser rather than relying on a single headline number.

Banking compliance

Beyond tax, banks apply compliance rules when a company opens and operates an account. Know your customer and anti money laundering checks are overseen by the Financial Services Commission and the Financial Supervisory Service, which is why banks ask about beneficial owners, the source of funds, and the genuine activity of the business. As of 12 March 2026, new corporate accounts are treated with added caution because of voice phishing and shell company concerns. Confirm the current requirements with the bank.

As of 12 March 2026, we do not list an international business account that is confirmed available to open as a local Korean won account inside South Korea. A resident corporate account is opened with a Korean bank such as KB Kookmin, Shinhan, Hana, Woori, or IBK. This page is general information, not tax advice, so confirm your position with the National Tax Service or a tax adviser. See the related guides below for markets where listed providers are available.

Questions about tax and compliance in South Korea

Does a business in South Korea need to register with the tax office?

Yes. A business registers with the tax office and receives a business registration certificate shortly after it starts activity. This registration underpins tax filing and invoicing, and banks ask for the certificate when opening a corporate account. Confirm the timing and process with the National Tax Service or a local adviser, as of 12 March 2026.

What is the VAT rate in South Korea?

The standard VAT rate in South Korea is 10 percent, as of 12 March 2026. Exports and certain qualifying international services can be zero rated, and some supplies such as financial, medical, and educational services are exempt. VAT registered businesses file periodic VAT returns. Confirm your VAT position with the National Tax Service or a tax adviser.

How is corporate income tax structured in South Korea?

South Korea applies corporate income tax at progressive rates that rise with taxable income, and a local income tax is added on top, broadly around 10 percent of the corporate income tax. Rates and brackets change, so confirm the current figures with the National Tax Service or a tax adviser, as of 12 March 2026.

Who administers business tax in South Korea?

The National Tax Service administers business tax in South Korea, including registration, returns, and audits. Local income tax is collected alongside the national tax. Banking compliance, such as know your customer and anti money laundering checks, is overseen by the Financial Services Commission and the Financial Supervisory Service. Confirm current rules with the relevant authority, as of 12 March 2026.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 12 March 2026. Confirm current terms with the provider before applying.