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South Korea Sets 2027 Crypto Tax at Up to 22% With a 2.5M-Won Deduction
South Korea's 2027 crypto tax applies a 20% national rate plus local surcharges on gains above 2.5 million won. Lawmakers question the lack of loss carryforward deductions, while the government leaves room for post-implementation adjustments.
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South Korea plans to tax cryptocurrency gains starting January 1, 2027, under a framework that levies up to 22% on profits above 2.5 million won. Deputy Prime Minister Koo Yun-cheol confirmed the timeline during a National Assembly Finance and Economy Committee meeting, saying the government expects the current schedule to hold. He added that authorities may adjust specific rules after implementation if practical issues emerge once filings begin.
The Income Tax Act classifies virtual asset profits as other income, separate from wages or business earnings. Investors will receive an annual deduction of 2.5 million won. Gains above that trigger a 20% national rate, and local taxes can push the total to 22%. Taxpayers calculate gains by subtracting eligible acquisition costs from disposal proceeds, a process that may require detailed records from both domestic and overseas platforms. Domestic exchanges are expected to supply transaction data, while investors who trade across multiple accounts may need to reconcile prices, fees, and transfers. Overseas holdings could add extra reporting duties when local records do not capture full histories.