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

1. 1Enter the transfer price (selling price) and acquisition cost (purchase price).
2. 2Input necessary expenses (brokerage fees, acquisition tax, renovation costs, etc.).
3. 3Select holding period, number of homes, and whether the property is in a regulated area.
4. 4Click Calculate to see capital gain, tax base, and calculated tax.

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