Business · Markets · 2 hrs ago
South Korea plans 22% tax on cryptocurrency income from 2027
South Korea plans to tax income from selling or lending virtual assets starting on January 1, 2027.
Under current income tax law, the tax applies to gains made from those activities.
The rate is 22%, including local income tax, after an annual basic deduction of 2.5 million won.
For example, a worker who makes a 10 million won gain and has no offsetting losses would owe 1.65 million won.
Debate over delaying the tax continues, while concerns remain about unclear rules and gaps in the system.
A former head of the National Tax Service said officials were preparing a notice setting out the tax rules, possibly by November.
The first tax return and payment for income earned in 2027 are scheduled for May 2028.
South Korea is set to tax income from selling or lending virtual assets at a rate of 22% from Jan. 1, 2027.
The rate includes local income tax, and an annual basic deduction of 2.5 million won applies.
The first tax returns and payments for income earned in 2027 are due in May 2028.
Officials are preparing guidance on tax standards, while debate continues over a possible delay and unclear rules.
- Who
- South Korean taxpayers who earn income from virtual assets.
- What
- The law is set to impose a 22% tax on income from selling or lending virtual assets, after an annual 2.5 million won deduction.
- When
- From Jan. 1, 2027. The first filing and payment is scheduled for May 2028.
- Where
- South Korea.
- Why
- The tax is required under the current Income Tax Act. Officials are preparing standards to clarify how it will be applied.
This story does not have two clearly opposing sides.
Lim Kwang-hyun said during a parliamentary audit that officials were preparing to issue tax standards around November.
Taxation of income from selling or lending virtual assets is set to begin.
First returns and payments for income earned in 2027 are scheduled.
- Tax rate
- 22%, including local income tax
- Annual basic deduction
- 2.5 million won
- Tax start date
- Jan. 1, 2027
- First filing and payment
- May 2028
- Example tax bill
- 1.65 million won on 10 million won in gains, assuming no other virtual-asset gains or losses
1 source
What people are saying
We are preparing to be able to do it around November.