#

Ease of Doing Business in

Korea, Rep

Korea, Rep Download Profile (1771.7KB, pdf)
Region OECD high income
Income Category High income
Population 50,617,045
GNI Per Capita (US$) 27,440
City covered Seoul

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 5 4 down
1
84.07 83.86 down
0.21
Starting a Business 11 17 up
6
95.83 94.36 up
1.47
Dealing with Construction Permits 31 28 down
3
77.84 77.83 up
0.01
Getting Electricity 1 1
-
99.88 99.88
-
Registering Property 39 41 up
2
76.34 76.22 up
0.12
Getting Credit 44 42 down
2
65.00 65.00
-
Protecting Minority Investors 13 10 down
3
73.33 73.33
-
Paying Taxes 23 25 up
2
86.56 86.54 up
0.02
Trading across Borders 32 32
-
92.52 92.52
-
Enforcing Contracts 1 1
-
84.15 84.15
-
Resolving Insolvency 4 6 up
2
89.22 88.75 up
0.47

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

23

DB 2016 Rank:

25

Change in Rank:

up2

DB 2017 DTF (% points):

86.56

DB 2016 DTF (% points):

86.54

Change in DTF (% points):

up0.02

Indicator Korea, Rep OECD high income
Payments (number per year) info_outline 12 10.9
Time (hours per year) info_outline 188 163.4
Total tax rate (% of profit) info_outline 33.1 40.9
Postfiling index (0-100) info_outline 92.6 85.1
Tax or mandatory contribution Payments (number) Notes on Payments Time (hours) Statutory tax rate Tax base Total tax rate (% of profit) Notes on TTR
Corporate income tax 1 online 83 10% (up to KRW 200 million), 20% (KRW 200 million to 20 billion) and 22%(over KRW 20 billion) taxable profit 16.53
Employer paid - National pension 1 online 80 4.5% gross salaries 4.98
Employer paid - National health insurance 0 online and jointly 3.035% gross salaries 3.42
Employer paid - Accident compensation insurance 0 online and jointly 3% gross salaries 3.38
Corporate Local Income Tax 1 online 1% (up to KRW 200 million), 2% (KRW 200 million to 20 billion) and 2.2%(over KRW 20 billion) taxable profit 1.65
Employer paid - Unemployment insurance 0 online and jointly 0.9% gross salaries 1.02
Acquisition tax for building 1 2% base rate price of acquisition 0.96
local income tax in proporation to employee salaries 1 online 0.5% gross salaries 0.56
Property tax 1 0.3% (building), 0.24%-4.8% (land), 0.14% (city planning) statutory standard price 0.32
Employer paid Long Term Care Insurance’ 0 online and jointly 6.55% gross salaries 0.22
Community facility tax 1 0.04%-0.12% statutory standard price of building 0.06
Per capita resident tax 1 KRW 62,500 per entity + KRW 250 per ㎡ of business place per entity 0.02
Automobile tax 1 46,800 per truck per vehicle 0.00
Value added tax (VAT) 1 online 25 10% net sales 0.00 not included
Fuel tax 1 various rates included in the price of fuel 0.00
Stamp duty 1 various rates contract value 0.00 small amount
Employee paid - National Pension 0 online and jointly 4.5% gross salaries 0.00 withheld
Employee paid - National Health Insurance 0 online and jointly 2.995% gross salaries 0.00 withheld
Employee paid - Employment Insurance 0 online and jointly 0.65% gross salaries 0.00 withheld
Employee paid - Individual income tax settlement 0 online and jointly various rates gross salaries 0.00 withheld
Totals: 12 188 33.1
  • Taxes by type Answer
    Profit tax (% of profit) 18.2
    Labor tax and contributions (% of profit) 13.6
    Other taxes (% of profit) 1.2
    Answer Score
    Postfiling index (0-100) 92.6
    VAT refunds 100.0
    Does VAT/GST exist? Yes
    Frequency of VAT/GST refund submission quarterly
    Does a VAT/GST refund process exist per the case study? Yes
    Restrictions on VAT refund process None
    Likelihood of VAT audit Unlikely
    Time to comply with VAT refund (hours) 0.0 100.0
    Time to obtain a VAT refund (weeks) 10.5 85.9
    Corporate income tax audits 84.4
    Does corporate income tax exist? Yes
    Likelihood of corporate income tax audit Unlikely
    Time to comply with a corporate income tax audit (hours) 10.0 84.4
    Time to complete a corporate income tax audit (weeks) 0.0 100.0
    Administrative appeal process
    First level administrative appeal authority Tax Protection Division in the District Tax office
    Is the appeal authority independent? Independent department within tax office
    Are appeal guidelines accessible to the public? Yes
    Source of appeal guidelines online/in printed publication/in person at tax office
    Is there a legal time limit for the appeal authority to issue a decision on the tax appeal? Yes
    Legal time limit 90 days

Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.

The hours for VAT include all the VAT and sales taxes applicable.

The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.

The postfiling index is the average of the scores on time to comply with VAT refund, time to obtain a VAT refund, time to comply with a corporate income tax audit and time to complete a corporate income tax audit.

N/A = Not applicable.