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China vs South Korea Tax Comparison
Side-by-side comparison of tax rates and systems
Tax Rate Comparison
Rate Comparison
Top Income Tax
China45%Lower
South Korea49.5%
Corporate Tax
China25%
South Korea25%
Capital Gains
China20%Lower
South Korea22%
VAT / Sales Tax
China13%
South Korea10%Lower
| Category | China | South Korea |
|---|---|---|
| Tax System | Progressive | Progressive |
| Top Income Tax | 45% | 49.5% |
| Corporate Tax | 25% | 25% |
| Capital Gains | 20% | 22% |
| VAT / Sales Tax | 13% | 10% |
| Crypto Tax | Yes | Yes |
| Wealth Tax | No | No |
| Tax Treaties | 110 | 93 |
| Currency | CNY | KRW |
The bottom line: China vs South Korea
China has the lower headline rate on 2 of the four main taxes (income, corporate, capital gains and VAT), making it the lighter-taxed of the two on paper. China runs a progressive tax system, while South Korea uses a progressive one. China has the wider tax-treaty network (110 agreements), which can reduce withholding tax on cross-border income.
- Income tax: China is lower (45% vs 49.5%)
- Corporate tax: identical in both (25%)
- Capital gains tax: China is lower (20% vs 22%)
- VAT / sales tax: South Korea is lower (13% vs 10%)