Tax

Simplified Taxpayer (Under KRW 104,000,000 per Year) and VAT Payment Exemption (Under KRW 48,000,000, 간이과세·부가세 납부면제): How to Apply, Amount & Eligibility (2026)

Simplified taxation if the previous year's supply value was under KRW 104,000,000 · exempt from the VAT payment obligation if under KRW 48,000,000 per year

This page is a translation of the Korean original and is for reference only. The official Korean guidance is the authoritative source for amounts and conditions, so be sure to confirm on the official website before applying. View Korean original (한국어)

Benefit: Individual business owners whose previous year's supply value was under KRW 104,000,000 are simplified taxpayers (Enforcement Decree Article 109). Tax payable = supply value × value-added ratio by industry (retail and restaurants 15%, manufacturing and agriculture/forestry/fishing 20%, accommodation 25%, construction, transportation and ICT 30%, etc.) × 10%. If the supply value in the taxable period is under KRW 48,000,000, the payment obligation is exempt (Value-Added Tax Act Article 69).
Who is eligible: Individual business owners whose previous year's supply value (annualized for new businesses) is under KRW 104,000,000 (not in an excluded industry)
When to apply: Choose the taxation type when registering the business · determination applies automatically · simplified taxpayers file per taxable period
How to apply: Business registration application and taxation type check at Hometax (홈택스, hometax.go.kr) · National Tax Service 126
Important notes: If the supply value exceeds the threshold, you switch to general taxation (notified by the National Tax Service). No change to the 2026 standards has been confirmed.
Note: Excluded: mining, wholesale, some manufacturing, real estate sales business, real estate rental business and taxable entertainment venues (supply value of KRW 48,000,000 or more), and other industries excluded by the Enforcement Decree. New businesses are assessed on a 12-month converted basis.

Go to the official guide →

Based on official sources as of 2026년 10월. Amounts and requirements may change, so please confirm with the official guide before applying.

Frequently asked questions

Simplified Taxpayer (Under KRW 104,000,000 per Year) and VAT Payment Exemption (Under KRW 48,000,000, 간이과세·부가세 납부면제): who can receive it?

Individual business owners whose previous year's supply value (annualized for new businesses) is under KRW 104,000,000 (not in an excluded industry)

Simplified Taxpayer (Under KRW 104,000,000 per Year) and VAT Payment Exemption (Under KRW 48,000,000, 간이과세·부가세 납부면제): how do I apply?

Business registration application and taxation type check at Hometax (홈택스, hometax.go.kr) · National Tax Service 126

Simplified Taxpayer (Under KRW 104,000,000 per Year) and VAT Payment Exemption (Under KRW 48,000,000, 간이과세·부가세 납부면제): how much will I receive?

Individual business owners whose previous year's supply value was under KRW 104,000,000 are simplified taxpayers (Enforcement Decree Article 109). Tax payable = supply value × value-added ratio by industry (retail and restaurants 15%, manufacturing and agriculture/forestry/fishing 20%, accommodation 25%, construction, transportation and ICT 30%, etc.) × 10%. If the supply value in the taxable period is under KRW 48,000,000, the payment obligation is exempt (Value-Added Tax Act Article 69).

Simplified Taxpayer (Under KRW 104,000,000 per Year) and VAT Payment Exemption (Under KRW 48,000,000, 간이과세·부가세 납부면제): when can I apply?

Choose the taxation type when registering the business · determination applies automatically · simplified taxpayers file per taxable period