South Korea vs United States
Corporate Tax Comparison
Time of Update: South Korea: 4/04/2026 / United States: 4/04/2026
Compare South Korea and United States corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
South Korea vs United States Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
South Korea
United States
General CIT Rate:
Progressive: 10% (up to 200M KRW), 20% (200M-20B KRW), 22% (20B-300B KRW), 25% (over 300B KRW)
General CIT Rate:
Federal corporate income tax: 21%. State CIT ranges from 1% to 10% (although some states do not impose CIT) and is deductible from the federal CIT.
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 Return Due Date:
1. April 15th (Federal income tax);
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
2. Income tax is usually due on the same date as federal income tax, but there are a few cases where the dates are different.
CIT Payment Due Date:
The submission of the declaration form (instalment payments are allowed in the case of elections).
CIT Payment Due Date:
As of the 15th day of the 12th month of the tax year.
CIT Estimated Payment Due Date:
N/A
CIT Estimated Payment Due Date:
Throughout the year, four equal instalments of estimated tax should be paid on the 15th day of the fourth, sixth, and ninth months of the tax year, and on the 15th day of the first month of the following year (April 15, June 15, September 15, and January 15).
Withholding Tax (WHT)
South Korea
United States
Resident Withholding Tax (Dividend/Interest/Royalty):
Resident Withholding Tax (Dividend/Interest/Royalty):
0/10/3
None-Resident Withholding Tax (Dividend/Interest/Royalty):
None-Resident Withholding Tax (Dividend/Interest/Royalty):
30/30/30
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
South Korea
United States
General Capital Gain Tax Rate:
25 (the same as the normal CIT rate for corporations over 300B KRW taxable income)
General Capital Gain Tax Rate:
21% (aligned with the federal CIT rate for corporations)
Effective Tax Rate (ETR)
South Korea
United States
Composite Effective Average Tax Rate:
24.87%
Composite Effective Average Tax Rate:
22.69
Composite Effective Marginal Tax Rate:
22.0%
Composite Effective Marginal Tax Rate:
7.03
