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United Arab Emirates vs South Korea
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇦🇪 United Arab Emirates
vs
🇰🇷 South Korea
Tax Year:

💰 Personal Income Tax Calculator

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0%
No personal income tax; unlikely to change short-term
No change
6–45%
Stable; political debate on top rate reduction
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
5%
5% stable; GCC coordination maintained
No change
10%
Standard 10% maintained
No change

Corporate Tax Rate

Corporate Tax Rate
9%
Corporate tax compliance and reporting maturing
No change
9–24%
Competitiveness discussions vs global peers
No change

Capital Gains Tax

Capital Gains Tax
0%
No CGT; free zone benefits under review for Pillar Two
No change
0–45%
Financial income taxation reform continuing
No change

Social Security & Payroll

Social Security / Payroll
~17.5%
Emiratisation targets affecting employer costs
No change
~18.5%
Contribution rates stable; pension reform discussion
No change
State, Regional & Local Taxes

🇦🇪 United Arab EmiratesEmirate-Level Fees & Free Zone Benefits

The UAE has no federal income tax on individuals. Emirates impose municipality fees (~5%) on commercial rents and tourism/hotel fees of 10–15%. Free Zones (DIFC, ADGM, Jebel Ali) offer 0–9% corporate rates for qualifying activities. Real estate transfer fees of 4% apply in Dubai. Emiratisation targets are increasing employer costs.

🇰🇷 South KoreaLocal Income Tax & Resident Tax

South Korea's 17 metropolitan/provincial governments levy local income tax at 10% of national income tax. Property holding tax (Jongbu-se) is a national progressive tax on higher-value properties. Local education taxes and acquisition taxes apply to property transfers. Seoul has higher effective rates due to property values.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

United Arab Emirates vs South Korea: Key Tax Differences (2026)

💰 Income Tax: 🇰🇷 South Korea has a higher top income tax rate (0% vs 6–45%). 🇦🇪 United Arab Emirates is more favourable for high earners.

🛒 VAT/Sales Tax: South Korea has a higher consumption tax (5% vs 10%).

🏢 Corporate Tax: 🇦🇪 United Arab Emirates offers a lower corporate rate (9% vs 24%), which can influence business location decisions.

📈 Capital Gains: 🇦🇪 United Arab Emirates taxes investment gains at a lower rate (0% vs 45%), benefiting investors.

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