South Korea plans to impose an up to 22% combined tax on annual crypto gains exceeding 2.5 million won (approximately $1,740), with the measure set to take effect Jan. 1, 2027.
Deputy Prime Minister Koo Yun-cheol told lawmakers at a July 29 meeting of the National Assembly's Finance and Economy Planning Committee that the government is "pushing forward with the plan to tax [cryptocurrency] starting next year as scheduled," signaling no intention to postpone the measure for a fourth time.
The tax was originally due to take effect in January 2022 and had been postponed until 2025. A December 2024 amendment delayed its introduction by another two years, to the start of 2027.
How the Tax Would Work
Under the current framework, income from transferring or lending crypto will be taxed separately as "other income." Investors will receive an annual deduction of 2.5 million won, with gains above that threshold subject to a 20% national tax rate, or 22% including local income tax, according to Korea's National Tax Service.
