Capital Gains Tax Calculator
Calculate capital gains tax on property and stock transfers.
양도소득세 내역
Overview
Capital Gains Tax in South Korea is levied on profits from the transfer of assets such as real estate and stocks. The taxable base is calculated by subtracting acquisition costs, necessary expenses, long-term holding deductions, and a basic deduction of KRW 2.5 million from the transfer price. Tax rates vary significantly based on holding period, number of properties owned, and location in regulated areas.
Formula
Capital Gain = Transfer Price - Acquisition Cost - Necessary Expenses. Tax Base = Capital Gain - Long-term Holding Deduction - Basic Deduction (KRW 2.5M). Tax = Tax Base x Rate. One-household one-home exemption applies (over 2 years, up to KRW 1.2B). Multi-homeowners may face surcharges of +20-30%p.
How to Use
- 1Enter the transfer price (selling price) and acquisition cost (purchase price).
- 2Input necessary expenses (brokerage fees, acquisition tax, renovation costs, etc.).
- 3Select holding period, number of homes, and whether the property is in a regulated area.
- 4Click Calculate to see capital gain, tax base, and calculated tax.
Examples
Stock Capital Gain of KRW 50M (Major Shareholder)
Major shareholder realizing KRW 50 million gain from listed stock disposal
Real Estate Gain of KRW 100M (Standard Rate)
Two-home owner selling property in non-regulated area after 5-year hold with KRW 100M gain
Background
Korea's capital gains tax was introduced in 1975 as a key tool for curbing real estate speculation and taxing asset income. For real estate, rates vary significantly based on holding period, number of properties, and regulated area status. Single-home households holding for 2+ years are exempt on transfers up to KRW 1.2 billion. For stocks, capital gains tax applies to major shareholders, while ordinary retail investors of listed stocks pay only securities transaction tax. The long-term holding special deduction can reach up to 80% depending on holding duration.
Tips
- ✔A single-home household that held the property for 2+ years (including 2 years of residence in regulated areas) is exempt from capital gains tax up to KRW 1.2 billion.
- ✔Long-term holding deductions can reach up to 80% for a qualifying single home (4% per year for holding + 4% per year for residence, max 10 years).
- ✔Multi-homeowner surcharge rates may be suspended or modified by government policy; check the latest regulations.
- ✔Capital gains tax must be filed within 2 months from the end of the month in which the transfer occurred.
- ✔If acquisition cost documentation is unavailable, an estimated acquisition cost may be applied, potentially increasing the tax burden.
FAQ
Q. What are the requirements for the one-household one-home exemption?
A household owning only one home in Korea that held it for 2+ years (including 2 years of residence for properties acquired in regulated areas) is exempt from capital gains tax on transfers up to KRW 1.2 billion. Only the portion exceeding KRW 1.2B is taxed.
Q. How do long-term holding deductions work?
For general real estate, a 2% annual deduction applies from year 3, up to 30% (15 years). For a qualifying single home, 4% per year for holding plus 4% per year for residence apply, up to a maximum of 80% (10 years).
Q. What are the surcharge rates for multi-homeowners?
In regulated areas, owners of 2 homes face a surcharge of +20%p above the basic rate, and owners of 3+ homes face +30%p. However, surcharge suspensions may apply depending on current government policy.
Q. When is the capital gains tax filing deadline?
You must file a preliminary return within 2 months from the end of the month in which the transfer date (the earlier of final payment or registration date) falls.
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