East Asia
North Korea tax rates 2026
A centrally planned economy with no conventional tax system for citizens, abolished in 1974. Foreign-invested enterprises are taxed under a separate legal regime.
Worldwide (residence-based)
Last verified Some figures indicative
The taxes
| Personal income (top) | NoneThere is no general personal income tax on citizens. Taxation was formally abolished in 1974 and replaced by state extraction of enterprise surplus. |
|---|---|
| Corporate income | 25% |
| Capital gains | Included in enterprise income for foreign-invested entities. |
| VAT / Turnover tax | None |
| Dividends (WHT) | 10% |
| Interest (WHT) | 10% |
| Royalties (WHT) | 10% |
| Social security (employee) | None |
| Social security (employer) | None |
| Wealth tax | None |
| Inheritance / estate | None |
| Property tax | Not applicable in the conventional sense. |
| Other | Foreign-invested enterprises are taxed at 25%, with reduced rates in special economic zones such as Rason. UN Security Council sanctions restrict essentially all investment. |
How the system works
- Tax system
- Worldwide (residence-based)
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- No
- Exit tax
- No
- CFC rules
- No
- CRS
- Not participating
- Special regime
- Special economic zones: reduced enterprise tax for foreign-invested entities, subject to UN sanctions
Rates checked July 2026: the top marginal income tax rate, the standard VAT rate and the main corporate rate.