🇯🇵 Japan vs 🇰🇷 Korea, Rep.
Burden and rates
| Japan | Korea, Rep. | |
|---|---|---|
| Tax-to-GDP (latest) | 34.1% (2021) | 32.0% (2022) |
| Tax-to-GDP in 2000 | 25.3% | 20.9% |
| Headline PIT rate | 45, plus 2.1% surtax. | 45 |
| Headline CIT rate | 23.2 | 25 |
| Standard VAT rate | Consumption tax: 10 | 10 |
| Individual CGT | Gains arising from sale of stock are taxed at a total rate of 20.315% (15.315% for national tax purposes and 5% local tax). Gains arising from sale real property are taxed at a total rate of up to 39.63% (30.63% for national tax purposes and 9% local tax) depending on various factors. | 45 for registered business-purpose real property held for two years or more (varying depending on the type of asset, holding period, etc.). |
| Inheritance tax | 55 | 50 |
Headline rates as stated by PwC Worldwide Tax Summaries; tax-to-GDP from OECD Revenue Statistics (Global).
Enforcement powers
| Japan | Korea, Rep. | |
|---|---|---|
| Social media & open-web monitoring | Not yet assessed | Not yet assessed |
| AI & machine-learning risk scoring | Yes — documented practice Self-reported in the OECD Inventory of Tax Technology Initiatives (2024 Global Survey on Digitalisation). | Yes — documented practice Self-reported in the OECD Inventory of Tax Technology Initiatives (2024 Global Survey on Digitalisation). |
| Automated bulk data matching | No — power absent Self-reported to ISORA (International Survey on Revenue Administration), FY2022. | No — power absent Self-reported to ISORA (International Survey on Revenue Administration), FY2022. |
| Digital platform reporting | Not yet assessed | Not yet assessed |
| Crypto-asset reporting | Partial / committed Japan is a signatory to the November 2023 CARF joint statement, committing to crypto-asset reporting with exchanges commencing by 2027. | Partial / committed Listed by the OECD Global Forum as committed to implement the Crypto-Asset Reporting Framework in time for first exchanges by 2027 (list updated 17 June 2025). |
| Exit tax on individuals | Not yet assessed | Yes — statutory power An exit/departure tax applies to individuals leaving Korea, Republic of (PwC Worldwide Tax Summaries). |
| Citizenship-based taxation | No — power absent Japan taxes by residence category (permanent / non-permanent resident / non-resident), not citizenship. | No — power absent Korea, Republic of taxes individuals by residence, not citizenship (PwC Worldwide Tax Summaries). |
| Controlled foreign company (CFC) rules | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). |
| Interest limitation rules | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). |
| Country-by-country reporting | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset. | Yes — statutory power Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset. |
| Public naming of non-compliant taxpayers | No — power absent Self-reported to ISORA (International Survey on Revenue Administration), FY2022. | Not yet assessed |
| Mandatory disclosure rules | No — power absent Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). | No — power absent Recorded in the OECD Corporate Tax Statistics anti-avoidance rules dataset (2026). |
Statuses: Law = Yes — statutory power · Practice = Yes — documented practice · Partial = Partial / committed · No = No — power absent · No evidence = No evidence found · — = Not yet assessed. Full evidence quotes and sources are on each country page.