Angel and Venture Investment Income Deduction Calculator

Estimate the Korea RSTA Article 16 angel and venture investment income deduction: 100/70/30 tiers for direct and partnership angel investing, 10% for partnership contributions and deduction funds, the 50%-of-income cap, and the actual tax saving.

Tax scenario inputs

Enter Korea-related tax assumptions in KRW. The model uses a simplified effective-rate estimate.

Taxable base

₩17,500,000

Estimated gross tax

₩2,695,000

Net tax after adjustment

₩2,695,000

After-tax amount

₩17,305,000

Effective rate

13.48%

This English page is a simplified Korea-related tax planning estimate. It does not reproduce official forms, progressive brackets, exemptions, local surtaxes, filing classifications, or eligibility decisions. Confirm current Korean rules before filing, paying, investing, or restructuring.

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What is the angel & venture investment income deduction?

The angel and venture investment income deduction lets an individual resident subtract part or all of the money they invest in start-ups and venture companies (or contribute to venture investment partnerships and deduction funds) from their comprehensive income.
The legal basis is Article 16 of Korea’s Restriction of Special Taxation Act (RSTA), and it is commonly called the “angel investment deduction.”

Its defining feature is a deduction rate that reaches 100%.
When you invest through a personal investment partnership or directly into a venture company, the portion up to KRW 30 million is deducted in full (100%), the portion from KRW 30 million to KRW 50 million at 70%, and the portion above KRW 50 million at 30%.
Compared with most income deductions (typically 12–40% of the amount), the tax-saving effect is exceptionally large.

Korea-based rules (2026). This calculator reflects Korean tax law (RSTA Article 16 and its Enforcement Decree Article 14) and is a simplified estimate. It does not reproduce every bracket, exemption, local surtax, or eligibility decision. Confirm current Korean rules with the National Tax Service (Hometax) or a licensed tax adviser before filing or investing.

Investment types and deduction rates (2026)

Even within this single deduction, the rate depends heavily on how you invest.
The calculator groups the six categories of RSTA Article 16(1) into three buckets.

1. Angel investment — 100% / 70% / 30% (RSTA §16(1)3·4·6)

This covers investing in a venture company through a personal investment partnership, investing directly into a venture company, and investing via online small-amount brokerage (crowdfunding).
The rate is applied in progressive tiers.

  • • Up to KRW 30 million: 100% deduction (the entire amount reduces income)
  • • KRW 30 million to 50 million: 70% deduction
  • • Above KRW 50 million: 30% deduction

2. Partnership contribution — 10% (RSTA §16(1)1·5)

This applies to contributions to venture investment partnerships, new-technology business investment partnerships, and professional investment partnerships, as well as investments in start-up/venture private equity funds (PEF).
You deduct 10% of the amount invested.

A professional manager diversifies across many companies, so single-company risk is lower, but the deduction rate is below direct angel investing.

3. Deduction fund — 10% (RSTA §16(1)2)

This is investment in the beneficiary certificates of a venture company investment trust (a “deduction fund”) sold by securities firms and asset managers.
The rate is 10%, but under Enforcement Decree Article 14(2) the deductible investment amount is capped at KRW 20 million per resident per year.

In other words, the maximum deduction from a deduction fund is KRW 2 million (KRW 20 million × 10%).

How the deduction and tax saving are calculated

The calculation has three steps.
First compute the deduction by tier, then apply the 50%-of-comprehensive-income cap, then multiply by your marginal tax rate to get the actual saving.

Step 1: Deduction amount (angel example)

Angel investing splits the amount into tiers.
For a KRW 50 million investment, KRW 30 million is deducted at 100% and the remaining KRW 20 million at 70%.

KRW 30,000,000 × 100% = 30,000,000
KRW 20,000,000 × 70% = 14,000,000
Deduction = KRW 44,000,000

A KRW 100 million investment gives 30,000,000 (100%) + 14,000,000 (70% of 20M) + 15,000,000 (30% of 50M) = KRW 59,000,000.

Step 2: The 50%-of-income cap

No matter how large, the deduction cannot exceed 50% of the year’s comprehensive income.
For example, with comprehensive income of KRW 80 million, the cap is KRW 40 million.

Cap = Comprehensive income × 50%
Final deduction = MIN(deduction, cap)

Step 3: Actual tax saving

An income deduction reduces the tax base rather than the tax itself.
So the actual saving equals the deduction multiplied by your marginal tax rate, plus 10% local income tax on top.

Income tax saved = Final deduction × marginal rate
Local income tax saved = Income tax saved × 10%
Total saving = Income tax saved + Local income tax saved

Marginal rates run from 6% to 45% based on the tax base, so the higher your income in the year you claim it, the larger the saving from the same deduction.

Worked scenarios

Small angel investor (partnership, KRW 30M; income KRW 80M)

The full KRW 30 million is deducted at 100%, so the deduction is KRW 30 million.
At a 24% marginal rate, the saving including local income tax is about KRW 7.92 million.

That is roughly a 26% saving relative to the amount invested — effectively getting a quarter of your principal back as tax.

Mid-size angel investor (direct, KRW 50M; income KRW 100M)

Combining KRW 30 million (100%) and KRW 20 million (70%), the deduction is KRW 44 million.
At a 35% marginal rate, the saving including local income tax is about KRW 16.94 million.

Up to KRW 50 million the blended rate stays at 70% or more, which is why this range is called the angel “sweet spot.”

Deduction fund for an employee (trust, KRW 30M; income KRW 80M)

The deductible investment is capped at KRW 20 million per year, so investing KRW 30 million still only deducts KRW 2 million (KRW 20M × 10%).
At a 24% marginal rate the saving including local income tax is about KRW 528,000.

The rate is lower, but professional, diversified management suits employees who find direct angel investing too risky.

Choosing the deduction year

This deduction is unusual in that you may choose the tax year in which to claim it.
You can pick any one of three years: the year of investment, or either of the following two years.

  • • If this year’s income is low and next year’s will be much higher, deferring the deduction to the higher-income year is better.
  • • Claiming in a 35% year rather than a 24% year saves more tax on the same deduction.
  • • You request the timing change when you obtain the investment confirmation certificate.

Remember that the 50%-of-income cap applies to the income of the year in which you actually claim the deduction.

Three-year holding rule and clawback

If, within three years of the investment date, any of the following occurs, the tax benefit already received is clawed back.
Plan to hold for at least three years from the time you invest.

  • • Transferring or recovering the contribution/investment interest
  • • Transferring or redeeming the beneficiary certificates of a deduction fund (venture company investment trust)

Exceptions such as the death of the investor and other unavoidable causes prescribed by decree are recognized.
This deduction is a time-limited measure applying to investments made through 31 December 2028.

Frequently asked questions

Q. How is an income deduction different from a tax credit?

A. A tax credit reduces the computed tax directly, while an income deduction reduces the tax base.
Even with a 100% deduction rate, the actual saving equals the deduction times your marginal rate (6–45%).

Q. Can wage earners claim it too?

A. Yes. Any resident — wage earner or business-income earner — is eligible.
Employees claim it in year-end settlement; comprehensive-income taxpayers claim it in the May final return.

Q. If I use several types, do the deductions add up?

A. They are computed per type and summed, but the total cannot exceed 50% of comprehensive income.
The angel 100/70/30 tiers apply to the combined annual amount across categories 3, 4, and 6.

Q. Does buying someone else’s shares qualify?

A. No. Acquiring another person’s interest or beneficiary certificates by transfer is excluded.
It must be a new contribution/investment, such as participating in a capital increase.

Q. Why does a deduction fund cap out at KRW 2 million?

A. A venture company investment trust limits the deductible investment to KRW 20 million per resident per year under Enforcement Decree Article 14(2).
Multiplied by the 10% rate, the maximum deduction is KRW 2 million.

Estimate your angel investment tax saving now

Enter the investment type, amount, and comprehensive income to see the deduction and the actual tax saving instantly.

Based on Korea’s 2026 RSTA Article 16, from tiered deductions to a side-by-side comparison of investment types — free.