South Korea’s 2026 Tax Plan Omits Crypto Tax Delay, Leaving 22% Gains Levy to Start Next Year

South Korea has finalized its 2026 tax revision plan without including an additional delay to virtual-asset taxation, according to a media report. If the proposal passes the National Assembly, taxes on gains from crypto investments will begin in January next year.

Asia Economy reported on Aug. 3 that the Ministry of Economy and Finance confirmed the 2026 tax plan without a further postponement of crypto taxation. Under the current income tax law, annual virtual-asset investment income above 2.5 million won ($1,800) will be taxed at 20% starting Jan. 1, 2027. Including local income tax, the effective rate will be 22%.

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 22% rate would apply to the remaining 2.5 million won ($1,800) after the basic deduction. The first filing and payment will be due in May 2028.

The tax was originally set to be introduced in 2022, but authorities pushed it back three times, citing an insufficient tax framework and related infrastructure.

The government believes much of the foundation for taxation is now in place. Starting next year, South Korea will be able to share overseas crypto transaction information with 48 countries, including Japan, Germany and France, under the Organization for Economic Cooperation and Development’s Crypto-Asset Reporting Framework, or CARF.

Still, the start date could be delayed again during deliberations in the National Assembly. The ruling People Power Party has already proposed an amendment to the income tax law that would abolish crypto taxation, citing parity with the repeal of the financial investment income tax.