Sole Proprietor Tax Calculator

Sole Proprietor Tax Calculator helps model Korea-related business income, expenses, tax rate, and credits in English.

Sole proprietor tax inputs

Total tax and insurance

₩17,726,263

₩1,477,189 monthly equivalent.

Income tax plus local

₩3,640,618

Bracket rate 0.1%.

VAT payable

₩6,150,000

Output VAT less input VAT under the selected taxpayer type.

Net income

₩27,273,737

Effective burden 17.7%.

Estimates Korean sole-proprietor comprehensive tax, VAT, local tax, national pension, health insurance, long-term care, bookkeeping requirement, sincere-reporting threshold, and Yellow Umbrella deduction with the Korean pure function. This English calculator calls the same pure tax calculation function used by the Korean page. Inputs and labels are translated; the formula is not replaced by a generic value-times-rate stub.

Related calculators

Sole proprietor tax calculator

This page translates the Korean sole-proprietor comprehensive tax guide and keeps the same business income, expense method, VAT, local income tax, insurance, Yellow Umbrella, bookkeeping, and sincere-reporting logic.

Business income and expense method

Business income is annual taxable revenue less deductible expenses. When actual bookkeeping is selected, the calculator uses the entered expense amount; when estimated filing is selected, it applies the Korean simple or standard expense-rate table for the selected business type.

VAT treatment is separate from income tax. The simplified taxpayer threshold is KRW 104 million of annual revenue, and the simplified VAT payment exemption threshold is KRW 48 million. General VAT is calculated with 10 percent output VAT less input VAT.

Income tax and insurance

The calculator applies personal deductions, dependent deductions, pension and health-insurance deductions, Korean progressive income tax, tax credits, and local income tax at 10 percent of final income tax.

Regional social insurance is included in the total burden. The model includes national pension, health insurance, and long-term care insurance so the result is closer to owner cash flow than an income-tax-only estimate.

Compliance thresholds

Yellow Umbrella deduction is capped by business income, with common caps of KRW 5 million, KRW 3 million, or KRW 2 million depending on income level. The calculator also checks double-entry bookkeeping and sincere-reporting target status by business group.

Use this page before year-end expense planning, filing-method selection, or deciding whether to register as a simplified VAT taxpayer. Professional services and high-revenue businesses can have stricter bookkeeping obligations.