Tools › Korea dividend withholding tax
Korea dividend withholding tax calculator
When a Korean company pays a dividend to a foreign shareholder, Korea withholds tax before the money reaches you. How much depends on whether you can claim a tax treaty. Enter a dividend amount to see the Korean tax withheld and what you receive.
Rates at a glance
| Situation | National tax | Local tax | Total |
|---|---|---|---|
| US resident individual or company (treaty rate) | 15% | 1.5% | 16.5% |
| US company owning ≥10% of voting shares (treaty rate, if it qualifies) | 10% | 1% | 11% |
| Nonresident without a treaty claim (default rate) | 20% | 2% | 22% |
Local income tax is 10% of the national tax withheld. The 10% treaty rate applies only to a US company that holds at least 10% of the voting shares and meets the treaty's conditions. ADR holders: the depositary bank and your broker handle withholding; the rate applied depends on the documentation they have on file.
Frequently asked questions
- How much tax does Korea withhold on dividends for US investors?
- Under the US–Korea tax treaty, Korea can withhold 15% national income tax on dividends paid to a US resident who claims the treaty, plus Korean local income tax of 10% of that amount (1.5%), for 16.5% in total. Without a treaty claim, the default rate for nonresidents is 22% (20% plus 2% local tax).
- Why is the total 16.5% and not 15%?
- The 1976 US–Korea treaty covers Korea’s national income and corporation taxes, not its local income tax. Korea’s National Tax Service withholds local income tax separately on top of the treaty rate for treaty partners such as the US.
- How do I get the treaty rate?
- The beneficial owner submits an application for the reduced treaty rate to the Korean withholding agent (typically through the broker or custodian), which files it with the tax office. Ask your broker how it handles the paperwork; it generally needs to be renewed every three years or when details change.
- Can I get credit for Korean tax on my US return?
- US taxpayers can generally claim a foreign tax credit for Korean tax withheld at the treaty rate, usually on IRS Form 1116. Tax withheld above the treaty rate is not creditable and must be reclaimed from Korea. Consult a tax professional for your situation.
Not tax advice. This calculator shows general withholding rates for illustration. Your actual tax depends on your residency, documentation, and account type. Confirm with your broker and a qualified tax adviser.
Sources: US–Korea income tax treaty (IRS), National Tax Service of Korea withholding guidance, IRS Form 1116 instructions. Verified September 29, 2026. Related: Korean stocks listed in the US · What is an ADR?