North Korea Tax Rates
North Korea (DPRK) operates a centrally planned economy where the state owns virtually all means of production. The country officially abolished income tax in 1974, claiming it was the first country to do so. In practice, the government extracts revenue through state-owned enterprises, forced labor contributions, and informal levies. Foreign investors in special economic zones like Rason face corporate tax rates of 14-25%.
Top Income Tax Rate
0%
Corporate Tax Rate
25%
VAT / Sales Tax
0%
Capital Gains Tax
0%
Detailed Tax Information
Income Tax Brackets
North Korea officially abolished personal income tax on April 1, 1974, under the Tax Abolition Law. The government claims no direct taxes are levied on citizens. In practice, citizens contribute labor to the state, and the government extracts value through state-controlled enterprises, mandatory contributions, and various informal levies. Foreign nationals working in special economic zones may be subject to personal income tax at rates determined by zone-specific regulations.
| Income Range | Tax Rate |
|---|---|
| KPW 0+ | 0% |
Corporate Tax
Foreign enterprises operating in North Korea's special economic zones (such as the Rason SEZ and Kaesong Industrial Region, currently inactive) are subject to corporate income tax. The standard rate is 25%, with a reduced rate of 14% for enterprises in encouraged sectors. State-owned enterprises operate under a different system of profit remittance to the government rather than formal corporate taxation.
Standard Rate
25%
Small Business Rate
14%
Capital Gains Tax
North Korea does not have a conventional capital gains tax. The concept has limited applicability in a centrally planned economy where private ownership of major assets is restricted. Foreign investors in SEZs may face taxation on gains from asset disposals under zone-specific regulations.
Rate
0%
VAT / Sales Tax
North Korea does not impose a value-added tax or general sales tax. The centrally planned economy relies on state-controlled pricing rather than consumption taxes. Turnover taxes and transaction taxes may apply in limited commercial contexts, particularly in special economic zones.
Standard Rate
0%
Cryptocurrency Tax
North Korea does not have cryptocurrency tax legislation. The country is subject to extensive international sanctions that prohibit most financial transactions. North Korea has been accused by international organizations of using cryptocurrency theft and mining to generate revenue for the regime, circumventing sanctions.
Tax Treaties
North Korea has very few tax treaties due to its international isolation and comprehensive sanctions regime. Limited agreements exist with a small number of countries. International sanctions and the country's political isolation severely constrain its treaty network.
Treaty Network
3
Double taxation agreements
Major treaty partners:
Key Details
Relocate to North Korea
See how much you could save by moving here from your current country.
+$24K
Tax in United States
$24K
24.4% effective
Tax in North Korea
$0
0% effective
You Save
100%
less tax annually
US Citizens: Important Note
US citizens are taxed on worldwide income regardless of residence. You'll still need to file US taxes, though the Foreign Earned Income Exclusion and Foreign Tax Credit may reduce your liability.
