DoubleTaxationTaxes on salary: South Korea preliminary data
How much income tax and social contributions are paid on a salary in South Korea, what a sole proprietor and a company pay, and which special regimes exist. Preliminary data.
Preliminary data: headline rates from official sources and bulletins of international organisations, without reliefs or special rules; being refined.
Calculation for a gross salary of €60,000 per year
| Gross salary | ₩100,910,777 ≈ €60,000 |
|---|---|
| Income tax | ₩12,230,730 ≈ €7,272 |
| Employee contributions | ₩8,334,543 ≈ €4,956 |
| Take-home pay | ₩80,345,504 ≈ €47,772 |
| Employer contributions and payroll taxes | ₩10,009,662 ≈ €5,952 |
| Employer's labour cost | ₩110,920,440 ≈ €65,952 |
Only some of the country's direct taxes and levies are counted: income tax on wages and compulsory contributions. Not counted: property and real-estate taxes; taxes on dividends, interest and other investment income; inheritance and gift taxes; indirect taxes such as VAT, excise and customs duties.
Taxes for sole proprietors and companies
Tax and contributions on the profit for a year; expenses are 10% of revenue, the company pays its profit out to the owner. Reliefs and local taxes are not included.
| Annual revenue | €30,000 ₩50,455,389 | €60,000 ₩100,910,777 | €120,000 ₩201,821,555 |
|---|---|---|---|
| Sole proprietor | ₩8,800,331 19.4 % | ₩20,905,224 23.0 % | ₩52,778,324 29.1 % |
| Company | ₩11,218,957 24.7 % | ₩22,437,915 24.7 % | ₩44,875,830 24.7 % |
Special tax regimes
Special taxation for foreign workers (flat 19% option)
For employees · rate 19.0 %
Who: Foreign executives and employees (not day workers) who start work in Korea by 31 Dec 2026; available for tax years ending within 20 years of first work in Korea. Not for work for related companies, except some foreign-invested firms.
Foreign employee may choose a flat 19% on gross employment income instead of the progressive scale; no deductions or credits apply and the income is kept out of global income.
Legal basis: Restriction of Special Taxation Act, Art. 18-2
Income tax reduction for foreign technicians (50% for 10 years)
For employees
Who: Foreign technicians meeting Presidential Decree criteria who first provide work to a domestic employer in Korea on or before 31 Dec 2026.
50% of the income tax on wage income is waived until the month of the 10th anniversary of first providing work in Korea (70% for 3 years then 50% for 2 years for designated materials/parts/equipment technicians who started by 31 Dec 2022).
Legal basis: Restriction of Special Taxation Act, Art. 18 (as in force from 18 Sep 2026, Act No. 21467)
Tax residence
The tax residence check does not cover South Korea yet.
Assumptions
- Calculated with the OECD Taxing Wages methodology: income tax including local taxes plus employee social security; single person without children, tax year 2026, ECB rate of 2 January 2026.
- Exchange rate: 1 EUR = 1681.84629 KRW (IMF — representative exchange rate, Korean won, 02/01/2026) ↗
Sources
- OECD Tax Database — Table I.1 central government PIT rates and thresholds (DF_PIT_CENT), Korea 2025
- OECD Tax Database — sub-central PIT rates, non-progressive (DF_PIT_SUB_NON_PROG), Korea
- OECD Tax Database — employee / employer / self-employed SSC rates (DF_SSC_EMPLOYEE, DF_SSC_EMPLOYER, DF_SSC_SELF), Korea 2025
- OECD Tax Database — corporate income tax rates (DF_CIT), Korea 2024–2026
- Korea Law Information Center — Income Tax Act Art. 55 (rates), in force 1 Jan 2026
- Korea Law Information Center — Income Tax Act Art. 129 (withholding rates; dividends 14%)
- Korea Law Information Center — Restriction of Special Taxation Act Art. 18-2
- IMF — Representative exchange rates, January 2026
- National Law Information Center — Restriction of Special Taxation Act, Art. 18 (foreign technicians)
- Korea Law Information Center — Income Tax Act Art. 47 (earned-income deduction), in force 1 Jan 2026
- Korea Law Information Center — Income Tax Act Art. 59 (earned-income tax credit)
- Korea Law Information Center — Income Tax Act Art. 51-3 (pension contribution deduction)
- Korea Law Information Center — Income Tax Act Art. 52 (special income deduction: health/employment-insurance premiums)
- Korea Law Information Center — Income Tax Act Art. 59-4 (special and standard tax credits)
Data checked: 08/11/2026. An indicative calculation for a typical case. Not tax advice.