Question 1

What is the corporate income tax rate for foreign-invested enterprises in North Korea?

Accepted Answer

Under the Law on Foreign-Invested Enterprise and Foreign Individual Tax, the standard corporate tax rate outside economic zones is 25% on net assessable operating profits.

Question 2

What reduced corporate tax rate applies inside the Rason Special Economic Zone?

Accepted Answer

Enterprises registered in the Rason Economic and Trade Zone enjoy a preferential corporate income tax rate of 14% (reduced to 10% for priority infrastructure, energy, and high-tech sectors).

Question 3

Are tax holidays available for foreign manufacturing joint ventures?

Accepted Answer

Qualifying production enterprises operating for 10+ years receive a 100% full tax holiday for 2 years starting from their first profit-making year, followed by a 50% tax discount for the subsequent 3 years.

Question 4

What withholding tax rate applies when foreign investors repatriate corporate profits?

Accepted Answer

Foreign investors remitting legitimate after-tax profits abroad are subject to a 10% statutory withholding tax, which is exempt for reinvestment in approved domestic infrastructure.

Question 5

When is the annual corporate income tax return due in North Korea?

Accepted Answer

Foreign-invested companies must submit their annual audited tax returns and financial statements to the local municipal tax office within 3 months following the close of the calendar fiscal year.

Audited Taxable Net Profit	$250,000.00
Statutory Baseline CIT Rate	14.0%
Pre-Holiday Corporate Tax Assessment	$35,000.00
Statutory Tax Holiday Waiver (감면)	-$0.00
Net Corporate Tax Payable to State (기업소득세)	$35,000.00
Net Distributable Foreign Profit	$215,000.00

North Korea Corporate Income Tax (기업소득세) Calculator

Taxable Profit & Enterprise Zone

Corporate Tax Assessment

DPRK Ministry of External Economy Statement

Engr. Muhammad Shahzad