South Korea to enforce 22% crypto tax from 2027

South Korea will tax virtual asset gains above 2.5 million won at 22% from January 2027, with reporting standards coordinated by the National Tax Service and major exchanges.

South Korea will introduce a 22% tax on virtual asset gains starting January 1, 2027. This tax applies to annual profits exceeding 2.5 million Korean won from trading, transferring, or lending digital assets, including bitcoin, ether, and other listed tokens. The 22% rate is comprised of a 20% income tax and a 2% local income tax, and only gains above the threshold will be taxed. The National Tax Service is collaborating with major local exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—to finalize reporting and collection standards. The new rules also cover income from lending or leasing virtual assets. Tax filings for income earned in 2027 will be due in May 2028. The Ministry of Economy and Finance has dismissed concerns about fairness or double taxation, emphasizing that the legal basis for the tax was established in December 2020 and is separate from other investment tax regimes.