|International Tax Rules||34||43.73|
Korea ranks 26th overall on the 2019 International Tax Competitiveness Index, two spots worse than 2018.
- Korea has a low VAT of 10 percent that is applied to a relatively broad base.
- Korea has a broad tax treaty network, with 93 countries.
- Business investments in machinery receive better-than-average treatment for corporate write-offs.
- Korea has multiple distortionary property taxes with separate levies on real estate, estates, and financial transactions.
- The personal income tax rate on dividends is 40.3 percent (compared to an OECD average of 23.8 percent).
- Companies are severely limited in the amount of net operating losses they can use to offset future profits or reduce past taxable income.