South Korea Confirms January 2027 Launch for Long-Delayed Crypto Tax
South Korea has finalized its tax reform plan for 2026 without delaying the planned crypto tax, set to begin on January 1, 2027. The country's Ministry of Economy and Finance confirmed that it had finalized the proposal, clearing the way for the long-delayed measure to proceed next year if lawmakers approve the package in the National Assembly.
The tax will apply to annual crypto gains above 2.5 million won, which is approximately $1,740. Investors will pay a 20% national tax and an additional 2% local income tax on their profits. The first tax return covering crypto income earned during 2027 will be filed in May 2028.
The government has cited the Organisation for Economic Co-operation and Development's (OECD) Crypto-Asset Reporting Framework as a key factor in its decision to proceed with the tax. The framework allows South Korea to access overseas transaction data from 48 participating jurisdictions, including Japan, Germany, and France.