Integrated Investment and Employment Tax Credit Calculator

Estimate two major Korean corporate tax credits for 2026 — the Integrated Investment Tax Credit (RSTA Article 24) and the Integrated Employment Tax Credit (Article 29-8). Investment base credit: 1/5/10% (large/mid/small firms) for general business assets, 3/6/12% for new-growth and core technology, and 15/15/25% for national-strategic technology (semiconductors, batteries, vaccines), plus a 10% extra credit on investment exceeding the prior-3-year average (capped at twice the base credit). Employment: per-added-worker credits up to KRW 15.5 million for youth, disabled, 60-plus, and career-interrupted hires (KRW 8.5-9.5 million for other regular workers), a minimum head-count increase of 10 (large) or 5 (mid-size), and KRW 13 million per regular conversion or parental-leave return.

Tax scenario inputs

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

Taxable base

₩50,000,000

Estimated gross tax

₩5,000,000

Net tax after adjustment

₩5,000,000

After-tax amount

₩75,000,000

Effective rate

6.25%

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.

Related calculators

What is the Integrated Investment & Employment Tax Credit?

Korea rewards companies that invest in facilities and that hire more workers by subtracting money directly from the tax they owe.
Because these are tax credits deducted from the computed tax — not deductions from income — the same amount saves far more tax than an income deduction would.

This calculator estimates both credits on one screen for the 2026 tax year.
The first is the Integrated Investment Tax Credit under Article 24 of the Restriction of Special Taxation Act (RSTA), and the second is the Integrated Employment Tax Credit under Article 29-8.
A company that meets the requirements can claim both credits in the same tax year, so growing investment and headcount together compounds the benefit.

Korea-based estimate. This calculator applies Korean 2026 rules (RSTA Articles 24 and 29-8 and Enforcement Decree Article 26-8). It is a planning estimate only and does not reproduce the minimum tax, carry-forward limits, local surtaxes, detailed worker counting, or eligibility decisions. Confirm the current law before filing.

Integrated Investment Tax Credit (RSTA §24)

This credit applies to money spent on business tangible assets (machinery and equipment) and certain intangible assets.
It combines a base credit and an additional credit, with rates that depend on the asset type and the company size.

Base credit rate (2026)

Asset typeLargeMid-sizeSmall (SME)
General business assets1%5%10%
New-growth / core technology3%6%12%
National-strategic technology15%15%25%

National-strategic technology covers government-designated fields such as semiconductors, secondary batteries, vaccines, displays, hydrogen, and future mobility, and carries the highest rate for investment made through December 31, 2029.

Additional credit (10% of the excess)

If this year’s investment exceeds the average annual investment of the previous three years, 10% of the excess is credited on top.
The additional credit is capped at twice the base credit.

Worked example

An SME invests KRW 500 million in general assets, with a prior-3-year average of KRW 300 million.
Base credit = 500M × 10% = KRW 50 million.
Additional credit = (500M − 300M) × 10% = KRW 20 million.
Total credit = KRW 70 million.

A newly founded company with no three-year history cannot claim the additional credit.

Integrated Employment Tax Credit (RSTA §29-8)

This credit gives a fixed amount per added regular worker as headcount grows.
“Youth-etc.” workers — young people, the disabled, those aged 60 or older, and career-interrupted hires — earn a much larger credit than other regular workers.

Credit per added worker (applies to 2026–2028)

Youth-etc. workers (young full-time, disabled, 60+, career-interrupted, North Korean defectors)

SizeSeoul metro areaNon-metro (regional)
Small (SME)KRW 14.5MKRW 15.5M
Mid-sizeKRW 8.0MKRW 8.0M
LargeKRW 4.0MKRW 4.0M

Other regular workers

SizeSeoul metro areaNon-metro (regional)
Small (SME)KRW 8.5MKRW 9.5M
Mid-sizeKRW 4.5MKRW 4.5M
LargeNot eligibleNot eligible

What changed for 2026

  • • Period: the credit applies to tax years 2026 through 2028.
  • • New comparison base: headcount must rise above at least one of the previous three tax years, not just the single prior year.
  • • Minimum head-count increase: large firms credit only the increase above 10 workers, mid-size firms above 5 workers. SMEs have no such floor.
  • • Youth test timing: a worker aged 15–34 when hired stays “youth” for up to 4 years (3 for large firms) even after turning 35.

Regular conversion & parental-leave return

Beyond the headcount credit, converting a non-regular worker to regular status or reinstating a worker after parental leave earns an extra KRW 13 million per person for SMEs and KRW 9 million for mid-size firms.

If the employment relationship ends within two years of the conversion or reinstatement, the credit is clawed back, so retention matters.

How to use the calculator

Step 1: Choose the credit

Pick the Integrated Investment or Integrated Employment tab.
When you calculate both, a combined total appears at the bottom.

Step 2: Enter company size and conditions

Select small, mid-size, or large, then the asset type or workplace region.
Rates and per-worker amounts adjust automatically.

Step 3: Enter amounts and headcount

On the investment tab, enter this year’s investment and the prior-3-year average; on the employment tab, enter current and comparison worker counts.
You can also add youth-etc. workers plus regular-conversion and parental-return counts.

Step 4: Review the result

The breakdown shows base and additional credits, or youth-etc. and other-worker credits.
The combined card sums both credits at a glance.

Frequently asked questions

Q. Can I claim the investment and employment credits together?

A. Yes. They rest on different articles, so meeting both sets of requirements lets you claim both in the same tax year.
Companies that grow investment and headcount at once save the most.

Q. How is the number of regular workers counted?

A. Add the headcount at the end of each month and divide by the number of months in the tax year.
Workers employed under a year, the largest shareholder and their relatives, and certain short-hour workers are excluded.

Q. Can large companies claim the employment credit?

A. Large firms claim only for youth-etc. workers, and only for headcount growth above the 10-worker minimum.
A separate offset (item 3) also applies, so confirm the exact figure with a tax professional.

Q. What if I cannot use the full credit this year?

A. Unused credit can be carried forward for up to 10 years.
The minimum tax rule, however, limits how much credit you can use in any single year.

Q. Can I file using this result directly?

A. This tool gives a quick 2026 estimate.
An actual filing must reflect asset classification, detailed worker counting, the minimum tax, and the rural special tax, so use the Hometax forms and a tax professional’s review.

Legal basis

  • • RSTA Article 24 (Integrated Investment Tax Credit) — base and additional credit, rates by asset type and company size
  • • RSTA Article 29-8 (Integrated Employment Tax Credit) — applies to 2026–2028, youth-etc. and other-worker credits
  • • RSTA Enforcement Decree Article 26-8 — minimum head-count increase (mid-size 5, large 10), definitions of youth-etc. and regular workers
  • • Current as of the July 1, 2026 enforcement date (verified via Korea’s National Law Information Center)

Rates and amounts change with tax reform, so confirm the law in effect at the time you file.

Estimate your tax credit now

Enter your investment amount and headcount to see your tax saving instantly.

Calculates the integrated investment and employment tax credits under Korea’s 2026 RSTA in one place.