Maximize Your Tax Savings Potential
A customized strategy guide for utilizing Net Operating and Capital Losses in Korea.
Business Net Operating Loss (NOL) Savings Calculator
See how business losses can be used to reduce your future tax liability.
1. Enter Your Information
2. Tax Savings Analysis
Deduction Limit
80%
Estimated Tax Savings
0 KRW
Sole Proprietor NOL Deduction Rules
For sole proprietors, business losses are offset against other types of income in a specific order.
General Business Loss
Losses from most business types (e.g., retail, manufacturing, services) can be deducted from other income.
Deduction Order:
1. Other Business Income
2. Earned Income (Salary)
3. Pension Income
4. Other Miscellaneous Income
5. Interest / Dividend Income
🚨 Real Estate Rental Loss (Commercial)
Losses from renting out commercial real estate (offices, stores) CANNOT be deducted from other income. They can only be carried forward to offset future rental profits from that same business (Ring-fencing rule).
Investor Capital Loss Management Strategy
Under Korean tax law, capital losses do not carry over. This makes in-year netting and loss harvesting essential.
Core Principle 1: Asset Group 'Silos'
Losses from one group cannot offset gains from another group.
Group 1: Real Estate, Property Rights, etc.
Group 2: Stocks (Domestic & Foreign)
Group 3: Derivatives
The Golden Rule: Capital losses expire at the end of the year and DO NOT carry over!
Core Strategy: Tax-Loss Harvesting Simulator
If you have realized gains, you can sell assets at a loss within the same year to reduce your tax bill.
Original Taxable Gain
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Taxable Gain After Harvest
0 KRW
Estimated Tax Savings (assuming basic rate)
0 KRW