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…
