Korea Axes Crypto Tax Delay, 22% Levy Set for Next Year
South Korea's government has finalized its tax revision plan for 2026 without any further delays to virtual-asset taxation. According to a recent report, taxes on gains from crypto investments will begin in January next year.
The effective tax rate will be 22%, which includes a 20% income tax and an additional 2% local income tax. This applies to annual virtual-asset investment income above 2.5 million won ($1,800). For example, an investor with 5 million won ($3,600) in annual gains from Bitcoin trading would pay 550,000 won ($400) in tax.
The government believes the foundation for taxation is now in place, citing the implementation of the Organization for Economic Cooperation and Development's Crypto-Asset Reporting Framework (CARF), which allows South Korea to share overseas crypto transaction information with 48 countries. However, the start date could be delayed again during parliamentary deliberations.