Korean Emigration Exit Tax and Payment Deferral Calculator
Compare Korean exit tax for 2026 departures: domestic-share deemed gains, KRW 2.5 million deduction, 20%/25% national tax, filing deadlines, deferral interest and security costs.
Facts pending · filing tax withheld
Filing tax and deferral review
Base national tax, local principal and confirmed inventory penalty
Pending review
Facts pending · filing tax withheld
Departure-date assessment
Filing and payment dates
Calendar base deadlines precede weekends, public holidays and special extensions. Enter verified deadlines to recalculate interest days. The base total excludes general non-filing, underreporting, late-payment and local penalties, ordinance rate adjustments and final payment rounding.
Immediate payment versus deferral
Review deferral after scope confirmation
| Item | Immediate | Deferred |
|---|---|---|
| Initial cash · including cash security | Pending review | Pending review |
| Interest after filing deadline | 0 KRW | Pending review |
| Security / guarantee / setup cost | 0 KRW | Pending review |
| Later tax and interest payment | 0 KRW | Pending review |
| Full tax and cost · security principal excluded | Pending review | Pending review |
Deferral compares the original filing principal and is not a tax saving. Separately review local post-sale refunds, interest settlement, partial disposals, returning residency, gifts and inheritance. Results are not deferral approval, credit eligibility or a refund determination.
Save the review and confirm actual submission
Korean Emigration Exit Tax and Deferral Review Rule year / source check: 2026 / 2026-10-07 Fictional sample: No Scope: Scope pending Departure / Korean years within ten years / becoming nonresident / facts confirmed: 2026-10-07 / 0 / Unknown / No Stock inputs (prior-year-end screening separated from departure values) 1. Unnamed / KOSPI: Prior-year ratio / screening value 0% / 0 KRW; Departure / acquisition / expenses / gain 0 KRW / 0 KRW / 0 KRW / 0 KRW; Threshold 1% / 5,000,000,000 KRW, Met=No Foreign shares (excluded from 2026 base): 0 KRW Timely agent report / inventory filing / affected face or contribution value: Unknown / Unknown / 0 KRW Pre-departure reporting deadline / inventory base: 2026-10-06 / Day before actual reporting Three-month base / next-May base / selected filing deadline: 2027-01-31 / 2027-05-31 / Unknown Verified filing deadline input: None · calendar base Net gain / basic deduction / taxable base: 0 KRW / Pending review / Pending review National tax / local principal / inventory penalty / national filing budget / base total: Pending review / Pending review / Pending review / Pending review / Pending review Deferral requested / national security / separate local security / statutory study: Yes / Unknown / No / No Deferral status / five years / ten years / end event / base payment deadline / selected deadline: Scope needs confirmation / 2031-10-07 / 2036-10-07 / 2031-10-07 / 2032-01-31 / 2032-01-31 Planned payment / verified deferred deadline input / interest days: 2031-10-07 / - / - Application-date national annual rate / local annual rate / rate confirmation: 3.1% / 3.1% / No Security cost / quote confirmation / cash security principal tied up: 0 KRW / No / 0 KRW National interest / local interest / initial cash / later tax payment / full deferred cost / added cost: Pending review / Pending review / Pending review / Pending review / Pending review / Pending review Post-sale credit requested / single disposal date / actual or assumed sale total: No / - / 0 KRW Other credit type / verified credit amount / confirmation: None / 0 KRW / No Adjustment status / candidate adjustment / capped other credit / post-credit national principal / claim base date: Credit comparison not selected / Pending review / Pending review / Pending review / - Pre-departure disposal tax and cost quote / confirmed / cost difference from immediate payment: 0 KRW / No / Pending review Actual completion (inventory and agent / tax filing / national and local deferral application): No / No / No Calendar base deadlines precede weekends, public holidays and special extensions. Interest uses actual days after the filing deadline through payment / 365 and the application-date rate. Recheck expanded foreign-share rules for departures from 2027. Security principal is separate from cost. Post-sale credits do not automatically revise original filing tax or deferred interest. General and local penalties, local post-sale refunds, partial disposals, unlisted valuation, foreign law, investment returns and final payment rounding need separate review. This is not a filing, deferral approval or refund determination. Income Tax Act Articles 118-9 to 118-18 · 2026 effective text: https://www.law.go.kr/DRF/lawService.do?OC=sumin&target=eflaw&type=HTML&MST=280405&efYd=20260701&JO=011815 Income Tax Decree Article 178-12 · security and interest: https://www.law.go.kr/DRF/lawService.do?OC=sumin&target=eflaw&type=HTML&MST=290841&efYd=20261001&JO=017812 National Taxes Rule Article 19-3 · reference annual 3.1%: https://www.law.go.kr/법령/국세기본법시행규칙/제19조의3 Local Tax Act Article 103-7 · separate local security: https://www.law.go.kr/법령/지방세법/제103조의7 Local Tax Decree Article 100-3 · local interest: https://www.law.go.kr/법령/지방세법시행령/제100조의3
Why departure can create tax without a share sale
Korean emigration exit tax is an income-tax provision for certain shareholders who become nonresidents by relocating their address or abode overseas.
Qualifying domestic shares are treated as disposed of on the departure date, so an unrealized gain can create a tax obligation without sale proceeds to fund it.
Before choosing continued ownership, a pre-departure sale or payment deferral, compare tax principal, security costs and statutory interest using consistent assumptions.
Korea-specific 2026 rules, checked 2026-10-07
This calculator covers domestic shares for departures in 2026.
The foreign-share expansion in Act No. 21221, Supplementary Article 1(2) and Article 8, applies to departures from 2027-01-01.
Foreign-share totals are recorded for scope information and excluded from the 2026 taxable base; non-2026 departures withhold tax results.
Do not apply future provisions early or substitute foreign-share holdings for the required domestic major-shareholder test.
Check three conditions for Korean exit-tax scope
Become a nonresident
Confirm that overseas relocation changes Korean tax residency.
A travel plan or extended overseas stay alone does not establish this transition.
Family, employment, accommodation and actual living arrangements need review.
Five years within ten
The combined period with a Korean address or abode within the ten years ending on departure must be at least five years.
One continuous stay or registration alone is not a substitute for the full period.
Reconcile actual residence and entry/exit records near the boundary.
Prior-year-end major holder
Use holdings at the end of the year preceding departure.
Screening ownership and value must reflect legally applicable largest-holder and related-party aggregation.
A higher departure-date price does not change the preceding-year test.
| Classification | Ownership at least | Screening value at least |
|---|---|---|
| KOSPI | 1% | KRW 5,000,000,000 |
| KOSDAQ | 2% | KRW 5,000,000,000 |
| KONEX | 4% | KRW 5,000,000,000 |
| Ordinary unlisted | 4% | KRW 1,000,000,000 |
| Verified qualifying K-OTC venture | 4% | KRW 4,000,000,000 |
Screen each company against either its ownership threshold or value threshold.
Applying the listed-share KRW 5 billion threshold to every unlisted company can miss a qualifying holder.
The KRW 4 billion venture threshold requires the statutory conditions in Decree Article 167-8; K-OTC trading alone is insufficient.
If aggregation or the domestic-share scope is unverified, screening remains visible while filing tax is withheld.
Prepare inputs and keep reference dates separate
Major-holder records
Prepare company-level ownership and screening value for the preceding year end.
Verify largest-holder group status, related-party scope, closing market prices and statutory valuation methods.
Do not add every relative’s shares automatically: some situations use individual holdings and others require aggregation.
Departure tax records
Enter verified departure-date market value, acquisition cost and additional allowable expenses under Income Tax Act Article 97.
Where market value is difficult to establish, follow Decree Article 178-9, including the sequence for unlisted sale comparables and statutory values.
The calculator does not create an unlisted-share appraisal.
Filing and security
Prepare the agent report, share inventory, national/local security documents and guarantee/setup quotes.
If inventory was not filed or was incomplete, identify the affected face or contribution value.
Do not calculate the inventory penalty as 2% of departure market value.
Actual facts versus scenarios
Keep planned payment dates, assumed sale prices and future application-date rates distinct from confirmed facts.
Multiple disposal dates or partial sales cannot be combined into one complete-disposal input.
A default rate or quote is not an approved condition.
Amounts use whole Korean won; the model supports up to 12 domestic stocks and aggregate values up to KRW 10 trillion.
Comma-separated amounts and decimal ownership inputs retain editable drafts.
Unverified results remain pending instead of becoming zero; verified out-of-scope facts and a genuinely zero taxable base are separate states.
Taxable base, national tax and local principal
Apply the annual deduction once
Net gain = total domestic departure value − acquisition cost − additional allowable expenses
Taxable base = max(0, net gain − KRW 2,500,000)
Aggregate the gains and losses of shares within the verified statutory domestic scope, then subtract the KRW 2.5 million annual allowance once.
Do not repeat the allowance per stock or subtract an ordinary stock-transfer allowance again here.
The exit-tax base is calculated separately from comprehensive income, retirement income and ordinary capital gains.
National: Act Article 118-11
Base up to KRW 300 million: base × 20%.
Above KRW 300 million: KRW 60,000,000 + excess × 25%.
Applying 25% to the entire base overstates the first bracket.
Local: Local Tax Act Article 103-3(8)
Base up to KRW 300 million: base × 2%.
Above KRW 300 million: KRW 6,000,000 + excess × 2.5%.
Local principal uses the same base; ordinance adjustments, additional penalties and final payment rounding need separate confirmation.
For missing or incomplete share inventory, the national reference penalty is 2% of affected face/contribution value under Article 118-15(4).
Timely complete reporting gives zero for this penalty; an unknown inventory status withholds the complete base total.
This amount does not replace general non-filing, underreporting or late-payment penalties.
From departure preparation to a saved review
- Confirm departure, combined Korean years within ten and the nonresident transition.
Changing an unknown condition to yes solely to obtain a result changes its meaning. - Enter domestic stocks by company and separate prior-year-end screening from departure valuation.
Do not include an expense again if it is already part of acquisition cost. - Select actual agent reporting and inventory status to identify the filing deadline.
Use the optional verified date when holidays or special extensions have been checked. - Enter national security, separate local security, statutory study, payment date and application-date rates.
Keep guarantee/setup costs separate from cash security principal. - Optionally compare a single disposal assumption, verified post-sale credit and a pre-departure disposal cost quote.
Request professional bracket/allocation review where automatic credit calculation is withheld. - Save inputs, assumptions, calendar dates and costs as TXT or print the review.
Then check actual reporting and security submission; saving a file does not submit a tax return or deferral request.
Pre-departure reporting and tax filing have different deadlines
Agent and inventory before departure
Article 118-15(1) requires reporting the agent and domestic-share inventory by the day before departure.
The inventory is prepared using the day before actual reporting, which can differ from the day before departure.
For departure on 2026-10-07, the pre-departure reporting deadline is 2026-10-06.
Tax filing depends on agent reporting
A timely reported agent selects the following May’s final-return period.
Otherwise the base deadline is three months after the departure month end.
For departure on 2026-10-07, calendar base dates are 2027-05-31 and 2027-01-31 respectively; unknown agent reporting withholds the selected deadline.
Local Tax Act Article 103-7(6) ties the emigrant’s local tax filing/payment deadline to this national filing deadline.
Do not automatically add the two-month local-tax extension used for ordinary capital-gains filings.
Displayed base dates precede Saturday, public-holiday and special-extension adjustments; check Hometax, the tax office and local authority.
Dates such as 2027-01-31 and 2032-01-31 are calendar references, not confirmation of an open filing day or final payment deadline.
Payment deferral does not postpone filing
Both national security and a reported agent
Income Tax Decree Article 178-12(1) requires statutory national-tax security and timely reporting of the tax agent.
Submit the deferral request with the tax return; obtaining a guarantee quote is not deferral approval.
Review a five-year limit from departure, or ten years where statutory overseas-study conditions are verified.
Separate local security and tied-up cash
Local-tax deferral requires the applicable security condition with the local authority as well as national deferral.
Without separate local security, this model pays local principal at the initial filing deadline.
Cash security principal increases initial cash needs but is excluded from the full tax-and-cost total.
Interest start and application-date rate
Interest = confirmed deferred principal × actual days after the filing deadline through payment × application-date annual rate / 365
Do not multiply tax by five years measured directly from departure.
The reference annual rate checked under National Taxes Rule Article 19-3 is 3.1%; verify the national and local rates applicable on the deferral application date.
A future application is not guaranteed to use 3.1%, so rate inputs and explicit assumptions are provided.
Payment on the filing deadline gives zero days; payment the next day gives one, and leap days count as actual days.
After an actual sale, the deferred-tax base deadline is three months after its month end.
If no sale occurs within the limit, use three months after the month containing the five- or ten-year anniversary.
The earlier of the entered single-disposal date and statutory cap selects the end event; payment after the applicable deadline withholds the full deferral cost.
Deferral interest does not replace late-payment penalties or authorize an unrestricted deferral period.
Worked example: KRW 4 billion value and 1 billion cost
Fictional sample A departs on 2026-10-07 after seven Korean years and meets the major-holder ownership threshold with a preceding-year-end KOSPI holding of 2%.
The screening value and departure value are both KRW 4 billion; acquisition cost is KRW 1 billion and additional expenses are zero.
Assume a timely agent report, complete inventory, national security and ordinary five-year deferral; local tax is paid at the initial filing deadline.
| Item | Basis | Amount |
|---|---|---|
| Taxable base | KRW 3bn − 2.5m | KRW 2,997,500,000 |
| National tax | 60m + excess ×25% | KRW 734,375,000 |
| Local principal | 6m + excess ×2.5% | KRW 73,437,500 |
| Immediate base total | Zero inventory penalty | KRW 807,812,500 |
| National interest | 3.1% × 1590 days /365 | KRW 99,170,804 |
| Security cost | Confirmed quote assumption | KRW 5,000,000 |
| Full national-deferral cost | Includes initial local payment | KRW 911,983,304 |
| Added cost over immediate | Interest + security cost | KRW 104,170,804 |
The selected filing deadline is 2027-05-31 and planned payment is 2031-10-07, giving 1590 interest days.
This differs from a simple five-year multiplication because only the actual period after the filing deadline is used.
Initial local principal plus security cost is KRW 78,437,500; later national tax plus interest is KRW 833,545,804.
Adding cash security principal increases initial funding but does not increase full cost.
These planning amounts round down sub-won fractions and do not determine official payment rounding.
Review post-sale adjustments separately
Adjustment credit and rate brackets
Income Tax Act Article 118-12 applies its rate formula to departure value minus the lower actual sale value.
Selling sample A for KRW 3 billion leaves a KRW 1 billion decline within the same 25% bracket: a KRW 250,000,000 adjustment candidate and KRW 484,375,000 remaining national principal.
The credit cannot exceed assessed national tax; a decline crossing progressive brackets or requiring multiple-stock allocation withholds the automatic amount for review.
Foreign tax credit
Raw tax paid abroad is not automatically the deductible Korean credit.
Article 118-13 applies an income fraction using departure value, necessary expenses and actual sale value, capped at assessed tax after adjustment.
Review exclusions where the foreign country credits Korean exit tax or adjusts acquisition basis to departure value.
Enter only a professionally verified credit amount after the statutory formula and exclusions have been checked.
Korean-source credit and claim
Applying the nonresident Korean-source tax credit excludes simultaneous foreign tax credit.
Other credit is capped at national tax remaining after adjustment.
Review a correction claim and credit application within two years of actual disposal; future disposal dates hold today’s rules constant as a scenario.
Post-sale credit candidates are separate from the initial filing budget.
An anticipated price decline does not reduce the original return or turn calculated deferral interest into an automatic refund.
Review local-tax settlement and any change to the interest principal through the actual filing/correction process.
Practical relocation scenarios and limits
Listed major-holder liquidity
If departure tax is large and you intend to retain shares, compare initial funding for national-only deferral against separately secured national/local deferral.
Use institution quotes and authority-confirmed facts for eligible security and guarantee limits.
A cash shortfall does not make approval certain.
Unlisted founders and family preparation
Ordinary unlisted holdings use different 4% or KRW 1 billion thresholds from listed shares.
Prepare sale comparables, valuation materials and cost evidence before entering a confirmed value.
If family members help, separately record who is actually reported as agent and when.
- Pre-departure disposal uses a verified quote including national/local tax, transaction tax and fees, and compares costs only.
Actual holding-period, company-size and transaction rules need the adjacent stock-transfer calculator or professional review. - Partial disposals, different sale dates, automatic unlisted appraisal, foreign law/treaties, local post-sale refunds, additional penalties and ordinance adjustments are outside scope.
Combining multiple sales into one date can alter deferral termination and interest. - Returning residency, gifts to a resident and inheritance can involve separate refund/cancellation conditions under Article 118-17.
The ordinary application reference is within one year of the qualifying event; this calculator does not determine refund eligibility.
Frequently asked questions
Does every long overseas stay trigger exit tax?
No. Confirm becoming nonresident, five Korean years within ten and preceding-year-end major-holder status.
Unverified conditions withhold the complete filing estimate.
Does a departure value above KRW 5 billion make me a major holder?
Screening uses preceding-year-end facts; departure value is the tax-calculation input.
Listed ownership thresholds are also 1%, 2% or 4%, while ordinary unlisted holdings use 4% or KRW 1 billion.
Are foreign shares added to the 2026 base?
This model includes the verified domestic scope and records foreign shares only for information.
Expansion applies from 2027-01-01 departures, which require renewed rule verification.
Can a planned tax agent select next May?
Distinguish actual timely reporting from an intention to appoint someone.
Unknown reporting withholds the selected deadline; prepare agent and inventory reports by the day before departure.
Does five-year deferral mean five years of interest from departure?
Interest uses days after the filing deadline through actual payment and the application-date rate.
Recalculate after verifying future rates and holiday/extension-adjusted dates.
Does national security automatically defer local tax?
The local provision requires separate security with the local authority.
Without that condition, this comparison pays local principal at the initial filing deadline.
Can I subtract an expected adjustment before filing?
The candidate adjustment is displayed separately from the initial budget.
Verify actual disposal, correction claims, exclusions, caps and bracket allocation, with separate local refunds and interest settlement.
Does saving the report submit a return or deferral application?
Saving and printing record your assumptions and results.
Actually submit the returns, security and applications to the tax office/Hometax and local authority, then update your completion checklist.
Official sources and final submission checks
The Income Tax Act text effective 2026-07-01 and Decree text effective 2026-10-01 were checked.
Supplementary provisions and date-specific texts separate Act No. 21221’s 2027 provisions from the 2026 calculation.
The 3.1% National Taxes Rule rate, the reference in Local Taxes Framework Decree Article 43(2), and Local Tax Act Articles 103-3(8), 103-7 and Decree Article 100-3 were checked as of 2026-10-07.
Recheck departure year, share scope, application-date rates, valuation, holidays/extensions, credit allocation, actual approvals and final rounding before submission.
- Income Tax Act Articles 118-9 to 118-18 · 2026 effective text
- Income Tax Decree Article 178-12 · security and interest
- National Taxes Rule Article 19-3 · reference annual 3.1%
- Local Tax Act Article 103-7 · separate local security
- Local Tax Decree Article 100-3 · local interest
Connect the review to actual reporting
Save prior-year-end screening, departure values, selected dates and interest days, security costs and separate principal, pending credits and actual-completion checks together.
Replace fictional sample facts and attach verification materials for your tax review.
Continue with the Overseas Resident Tax Calculator for residency/income organization or the Major Shareholder Stock Tax Calculator for an actual pre-departure disposal.
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