Naenara Democratic People's Republic of Korea

Investment environment in Rason Economic and Trade Zone

Nature and geography

Natural resources and infrastructures

Legal groundwork and economy

Finance, education and culture

Investment Projects

Projects for Development of Industrial Parks

Projects for Development of Tourist Destinations

Investment Projects for Local Industries

Investment Items

Investment Policy

Tax Policy

Procedures of Enterprise Establishment

Management Committee of Rason Economic and Trade Zone

There are nine kinds of taxes in the Zone, that is, turnover tax, business tax, enterprise income tax, individual income tax, city management tax, vehicle tax, property tax, legacy tax and resource tax.
The tax rates are very low, and such preferential treatment such as reduction of and exemption from taxes shall be applied according to investment projects.
― The rate of enterprise income tax shall be 14 % of the net profit, and 10 % of the net profit in priority sectors.
■ Where a business invests in priority sectors, it shall benefit from exemption from enterprise income tax for the first 4 years and reduction of 50 % for the next 3 years.
■ A business in production sectors shall be entitled to an exemption from enterprise income tax for 3 years and to a reduction of up to 50 % for the following 2 years.
■ A business in such service sectors as construction (designing included), electric power, transport, telecommunications, finance, insurance and city management shall be entitled to an exemption from enterprise income tax for one year and to a reduction of up to 50 % for the following 2 years.
― The rates of turnover tax and business tax vary according to the objects of taxation, that is, 1-15 % and 1-10 % respectively.
― The individual income tax shall be exempted when labour remuneration is less than € 500, and shall be imposed when it exceeds € 500.
― Property tax is 1-1.4 % of the value of registered property.
― Legacy tax is 6-30 % of the value of inheritance (over € 70 000).