Japan vs South Korea
Corporate Tax Comparison
Time of Update: Japan: 4/03/2026 / South Korea: 4/04/2026
Compare Japan and South Korea corporate tax rates, filing due dates, withholding tax, VAT, capital gains tax, and effective tax metrics for cross-border company planning.
Japan vs South Korea Corporate Tax Comparison
Basic Corporate Tax Comparison
Corporate Income Tax (CIT)
Japan
South Korea
General CIT Rate:
23.2
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:
Within two months after 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:
Within two months after the end of the company's fiscal 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:
Within two months after the end of the sixth month of the company's accounting period.
CIT Estimated Payment Due Date:
N/A
Withholding Tax (WHT)
Japan
South Korea
Resident Withholding Tax (Dividend/Interest/Royalty):
20/20/0
Resident Withholding Tax (Dividend/Interest/Royalty):
None-Resident Withholding Tax (Dividend/Interest/Royalty):
15/20/20
None-Resident Withholding Tax (Dividend/Interest/Royalty):
Value-Added Tax (VAT)
Capital Gain Tax (CGT)
Japan
South Korea
General Capital Gain Tax Rate:
Capital gains are subject to the normal corporate income 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)
Japan
South Korea
Composite Effective Average Tax Rate:
28.36
Composite Effective Average Tax Rate:
24.87%
Composite Effective Marginal Tax Rate:
29.26
Composite Effective Marginal Tax Rate:
22.0%
