Compare taxes and see how much you save moving from South Korea to China
South Korea and China are Northeast Asia's two largest economies and both have significant expat professional communities β particularly in tech, manufacturing, and finance. South Korea's income tax (6β45% national) plus 10% local income tax surtax produces a combined top rate of 49.5%, and employee social contributions add approximately 9.4%. China's IIT (3β45%) plus Five Insurances and Housing Fund (~15.5%) produces comparable effective rates. At mid-professional salaries ($60,000β$120,000 USD equivalent), South Korea typically produces 2β5 percentage points higher total deduction than China. Korea's special 19% flat rate for foreign professionals (optional, for up to 20 years) is a significant counterbalance β qualifying expats can opt for 19% flat instead of standard progressive rates, making Korea highly competitive. China's 6-year foreign income exemption and post-2022 reduced foreigner allowances need to be weighed carefully.
Combined Top Rate
45% national + 10% local income tax surtax
Top Rate (above CNY 960,000)
Plus Five Insurances + Housing Fund ~15.5% employee
At $100,000 income:
That is $417/month back in your pocket!
| Income | KR Tax | CN Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 (~KRW 68M / ~CNY 360K) | ~KRW 5.6M national tax + ~KRW 560K local + ~KRW 6.4M social = ~KRW 12.56M (~18%) | ~CNY 52,500 IIT + ~CNY 55,800 social = ~CNY 108,300 (~30%) | Korea saves ~$6,000 | $60,000 |
| $80,000 (~KRW 109M / ~CNY 576K) | ~KRW 12.2M national tax + ~KRW 1.22M local + ~KRW 7.6M social = ~KRW 21M (~19%) | ~CNY 113,000 IIT + ~CNY 71,000 social = ~CNY 184,000 (~32%) | Korea saves ~$10,000 (or similar with 19% flat) | $100,000 |
| $100,000 (~KRW 136M / ~CNY 720K) | ~KRW 19.0M national tax + ~KRW 1.9M local + ~KRW 8.2M social = ~KRW 29.1M (~21%) | ~CNY 167,000 IIT + ~CNY 80,000 social = ~CNY 247,000 (~34%) | Korea saves ~$10,000 (standard) or ~$8,000 (19% flat option) | $100,000 |
| $150,000 (~KRW 204M / ~CNY 1,080K) | ~KRW 37.2M national tax + ~KRW 3.72M local + ~KRW 8.5M social (capped) = ~KRW 49.4M (~24%) | ~CNY 315,000 IIT + ~CNY 88,000 social (capped) = ~CNY 403,000 (~37%) | Korea saves ~$12,000 | $120,000 |
| $200,000 (~KRW 272M / ~CNY 1,440K) | ~KRW 59.8M national tax + ~KRW 5.98M local + ~KRW 8.5M social (capped) = ~KRW 74.3M (~27%) | ~CNY 489,000 IIT + ~CNY 88,000 social (capped) = ~CNY 577,000 (~40%) | Korea saves ~$20,000 | $200,000 |
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Hire Compliantly in Korea or China βSouth Korea's flat tax rate option (λ¨μΌμΈμ¨) allows foreign employees to pay a flat 19% national income tax (plus 1.9% local surtax = 20.9% combined) on all Korean employment income, instead of the progressive rates (6β45% national). To elect this option, you must be a foreign national, and the election must be made in your first year of employment in Korea. The flat rate applies for the year of election and up to the following 20 years. At $100,000 equivalent salary, 20.9% flat compares very favourably to the standard progressive effective rate of approximately 25β28% at that income level. The election is irrevocable for the period chosen β calculate carefully at your specific income level.
China's Individual Income Tax Law provides that foreign nationals who have been Chinese tax residents for fewer than 6 consecutive years pay Chinese IIT only on China-source income β foreign-source income not remitted to China is exempt. Once a foreign national completes 6 consecutive years of Chinese tax residency, they become liable for Chinese tax on worldwide income, similar to Chinese nationals. To reset the 6-year clock, the foreign national must either leave China for 31+ consecutive days or 90+ days total in a single calendar year. This rule drives many long-term expats to carefully plan annual absence from China to avoid crossing the 6-year threshold.
Yes β foreign nationals from countries that have a social security totalization agreement with Korea (including the US, UK, Canada, Germany, France, Australia, and others) can apply to be exempted from Korean National Pension (NPS) contributions if they are already covered by their home country's pension system and can provide proof. The NPS exemption saves 4.5% of gross salary. South Korea currently has totalization agreements with 34 countries. Expats from countries without such agreements must contribute to NPS (4.5% employee share) but are entitled to a lump-sum refund of their contributions when they leave Korea permanently.
It depends on the sector and career stage. China's scale is unmatched β the world's second-largest economy, with dominant positions in manufacturing, e-commerce, fintech, and AI. For those seeking frontier-economy career acceleration and China-market exposure, Beijing and Shanghai remain compelling. Korea's chaebols (Samsung, LG, Hyundai, SK, Lotte) offer highly structured, globally competitive careers in tech, manufacturing, and finance. Korea's economy is more internationally accessible for non-Mandarin speakers. For Western expats, Korea's stronger English-language business environment and Samsung/LG's global brand make Korea more approachable. For those with Mandarin skills and appetite for scale, China's opportunity set is larger.
Both South Korea and China have comprehensive tax treaties with the United States. US citizens in Korea: employment income is primarily taxed in Korea; the Foreign Tax Credit offsets US liability. Korea's 19% flat rate option, if elected, may leave residual US tax given the relatively modest rate. US citizens in China: the FTC applies; China's effective rates at mid-incomes (30β35%) typically cover or exceed US liability. FBAR and Form 8938 (FATCA) filing requirements apply in both countries if foreign accounts exceed thresholds. The Korea-US treaty also addresses NPS pension contributions specifically. For US expats in both countries, specialist US expat tax preparation is strongly recommended.