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Korea: Changes to tax brackets for dividend income; 1% increase on corporate tax brackets

Effective January 1, 2026

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February 3, 2026

The National Assembly on December 2, 2025, approved the 2025 tax amendment bills, which:

  • Changed the tax brackets for dividend income as follows:
    • Up to KRW 20 million will be taxed at 14%
    • Above KRW 20 million up to KRW 300 million will be taxed at 20%
    • Above KRW 300 million up to KRW 5 billion at 25%, and income exceeding KRW 5 billion will be taxed at 30%
  • Increased each corporate tax bracket (all four tiers) by 1%

The changes are effective January 1, 2026.


For more information, contact a KPMG tax professional in Korea:

Min-Jung Hong | minjunghong@kr.kpmg.com

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