Canada vs South Korea
Corporate Tax Comparison
Time of Update: Canada: 4/04/2026 / South Korea: 4/04/2026
Compare Canada and South Korea corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Canada vs South Korea Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Canada
South Korea
General CIT Rate:
Federal corporate income tax: 15%. Provincial and territorial CITs range from 8% to 16%.
General CIT Rate:
Progressive: 10% (up to 200M KRW), 20% (200M-20B KRW), 22% (20B-300B KRW), 25% (over 300B KRW)
CIT Return Due Date:
After six months from the end of the company's fiscal year.
CIT Return Due Date:
Mid-term tax returns: within two months from the end of the six-month period; annual tax returns: within three months from the end of the fiscal year.
CIT Payment Due Date:
Typically, two months after the end of the company's tax year.
CIT Payment Due Date:
The submission of the declaration form (instalment payments are allowed in the case of elections).
CIT Estimated Payment Due Date:
Tax installment payments are usually due on the last day of each month.
CIT Estimated Payment Due Date:
N/A
Withholding Tax (WHT)
Canada
South Korea
Resident Withholding Tax (Dividend/Interest/Royalty):
N/A
Resident Withholding Tax (Dividend/Interest/Royalty):
None-Resident Withholding Tax (Dividend/Interest/Royalty):
25/25/25
None-Resident Withholding Tax (Dividend/Interest/Royalty):
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Canada
South Korea
General Capital Gain Tax Rate:
Half of the capital gains are considered as taxable capital gains, recorded as company income and taxed at the regular tax rate.
General Capital Gain Tax Rate:
25 (the same as the normal CIT rate for corporations over 300B KRW taxable income)
Effective Tax Rate (ETR)
Canada
South Korea
Composite Effective Average Tax Rate:
23.74
Composite Effective Average Tax Rate:
24.87%
Composite Effective Marginal Tax Rate:
13.74
Composite Effective Marginal Tax Rate:
22.0%
