Korea
Category | Rank | Score |
---|---|---|
Overall Rank | 26 | 60.62 |
Corporate Taxes | 33 | 46.63 |
Individual Taxes | 24 | 55.24 |
Consumption Taxes | 2 | 98.97 |
Property Taxes | 32 | 43.03 |
Crossborder Taxes | 33 | 57.45 |
Korea ranks 26th overall on the 2021 International Tax Competitiveness Index, one spot worse than in 2020.
Strengths
- Korea has a low VAT of 10 percent that is applied to a relatively broad base.
- Korea has a broad tax treaty network, with 93 countries.
- Business investments in machinery receive better-than-average treatment for corporate write-offs.
Weaknesses
- Korea has multiple distortionary property taxes with separate levies on real estate, estates, and financial transactions.
- The personal income tax rate on dividends is 44.0 percent (compared to an OECD average of 24.1 percent).
- Korea is one of the few OECD countries that operates a worldwide corporate tax system (rather than a territorial system).
Learn more about the tax system in Korea