South Korea Weighs Starting Crypto Tax in January 2026, Finance Ministry Says Plan Not Final
Summary
- A plan is under review to begin taxation of virtual assets, or cryptocurrencies, from next January as scheduled.
- If the tax law revision bill does not include a plan to defer taxation of virtual assets, taxation could begin on Jan. 1, 2026.
- Income from virtual-asset trading would be classified as miscellaneous income, with a 20%% tax rate applied to annual gains above 2.5 million won, or 22%% including local income tax.
Forecast Trend Report by Period
South Korea is weighing a plan to begin taxing virtual assets, or cryptocurrencies, from next January as previously scheduled, according to a local media report.
Asia Economy reported on May 11 that fiscal authorities had internally decided not to include a delay to crypto taxation in a tax law revision bill due in late July. That would leave open the possibility of the tax taking effect on Jan. 1, 2026.
The taxation threshold and detailed procedures are to be set out in a notice from the National Tax Service. The government has been working with major crypto exchanges to build related infrastructure, and the system is understood to be ready for implementation.
The Ministry of Economy and Finance told Bloomingbit by phone that the contents of the tax law revision bill have not yet been finalized.
If the tax is implemented, income from virtual-asset trading would be classified as miscellaneous income. Under the current income tax law, annual gains exceeding 2.5 million won ($1,810) would be taxed at 20%, or 22% including local income tax.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
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