South Korea crypto tax set at 22% from 2027

South Korea will begin taxing cryptocurrency gains at a combined rate of 22% from Jan. 1, 2027, ending expectations that the long-delayed measure could be postponed for a fourth time. Summary Annual crypto gains above 2.5 million won will become taxable as “other income.” Investors will pay 20% national tax plus 2% local income tax on gains exceeding the allowance. Critics warn that the absence of loss carryforwards could push trading toward offshore platforms. A pending opposition bill could still repeal the provisions before the rules take effect. South Korea confirms crypto tax launch Deputy Prime Minister and Finance Minister Koo Yun-cheol confirmed the implementation schedule during a National Assembly Finance and Economy Planning Committee meeting on July 29. “We are pushing forward with the plan to tax cryptocurrency starting next year as scheduled,” Koo said. Under the Income Tax Act, income earned by transferring or lending virtual assets will be classified as other income. Annual gains exceeding 2.5 million won, or about $1,740, will face a 20% national tax. A local income tax raises the combined rate to 22%. Investors whose annual gains remain below the threshold will ow...