South Korea Prepares for 22% Crypto Tax as Tax Officials Rush to Implement

Introduction

The South Korean government is preparing to implement a 22% crypto tax starting January 1, 2027.

Tax Guidelines

The National Tax Service plans to publish crypto tax guidelines in November, which will outline the rules for qualifying income.

Taxable Income

The framework takes effect on January 1, 2027, and qualifying income will be taxed as separate other income under the Income Tax Act.

Reporting Systems

The tax covers gains from transferring or lending digital assets, and exchanges face questions about their reporting systems.

Special Treatment

digital assets acquired before 2027 receive special treatment, with their acquisition value generally using the higher of the original cost or the market value just before implementation.

Investor Records

ing investors who bought before 2027 should therefore keep records of their original costs.

Implementation Timeline

Investors would file returns for 2027 income in May 2028, when residents declare the previous year's income between May 1 and May 31.

Opposition

a petition reached the 50,000 signatures needed for parliamentary consideration, and the People Power Party has proposed postponing the tax until January 2030.