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South Korea Confirms 22% Tax on Crypto Gains From Jan. 1, 2027

Exchanges must build reporting systems before taxpayers submit the first returns in May 2028.

Overview

  • Deputy Prime Minister Koo Yun-cheol confirmed during a July 29 National Assembly committee meeting that the government will proceed with the tax as scheduled.
  • The measure treats income from transferring or lending virtual assets as "other income" under the Income Tax Act and applies a combined national and local rate of 22 percent.
  • Only annual gains above a 2.5 million won allowance will be taxed, with amounts below that threshold exempt from the levy.
  • Lawmakers have not approved rules to carry forward losses and critics say that gap plus incomplete cross-border reporting raises a real risk of traders moving activity to overseas exchanges or decentralized platforms.
  • A repeal bill introduced by opposition lawmakers in March sits in a National Assembly subcommittee, so the legal and operational details could still change before the tax takes effect.