From 2027, crypto gains over ₩2.5M are taxed at 22%
Under current law, from 1 January 2027 gains from selling or lending virtual assets are 'other income'. The first ₩2.5M a year is tax-free. Anything above is taxed separately at 20% income tax plus 2% local tax, 22% in all. Acquisition cost and fees are deductible.
Conditions used in the video
- Start date (current law)
- 2027-01-01
- Gains from sales and lending in a year
- ₩10M
- Acquisition cost and fees
- deductible
- Basic allowance
- ₩2.5M a year
- Rate
- 20% + 2% local tax
Results
- Tax through 2026
- ₩0
- Tax from 2027 (₩10M gain)
- ₩1,650,000
- Taxable amount
- ₩7,500,000
- Income tax at 20%
- ₩1,500,000
- Local income tax
- ₩150,000
- On a ₩20M gain
- ₩3,850,000
At a glance
Under current income tax law. If the National Assembly postpones again, this changes.
- 2026 · ₩10M gain₩0
not taxed
- 2027 · ₩10M gain₩1,650,000
(10M − 2.5M) × 22%
- 2027 · ₩20M gain₩3,850,000
(20M − 2.5M) × 22%
Why it works this way
The law taxing crypto gains already exists. It was passed in December 2020, and only the start date has moved, three times so far. Current law sets it at 1 January 2027. The government said in its 2026 tax bill it will not postpone again, while a bill to defer to 2030 has been tabled in the Assembly.
First, what is taxed.
소득세법 제21조제1항제27호.
- Scopeincome from transferring or lending a virtual asset as defined in the Virtual Asset User Protection Act
- Categoryother income, not combined with wages or business income (제14조제3항)
- Amountsale price − actual acquisition cost − fees and other incidental costs (제37조제1항제3호)
Swapping one coin for another is a transfer. Keep trade records and fee statements, or the acquisition cost cannot be deducted.
The calculation: take the year's virtual asset income, subtract ₩2.5M, and multiply the rest by 20%. Local income tax adds 10% of that (two more points), so 22% in total.
소득세법 제64조의3제2항 · 제84조제3호 · 지방세법 제103조의3.
- ₩10M gain in a year₩2.5M allowance → ₩7.5M taxable
- Income tax at 20%₩1,500,000
- Local tax at 10% of that₩150,000 → ₩1,650,000 in total
Up to ₩2.5M for the year there is no tax (제84조제3호). The ₩2.5M is an annual total, not per trade.
On a ₩20M gain it is ₩17.5M after the allowance, times 22%: ₩3,850,000. The allowance comes off once, and above it the rate stays flat. There are no brackets.
Because it is taxed separately, a high salary or business income does not push the rate up. Equally, a crypto loss cannot be set against other income.
Set by 소득세법 제37조제5항 and 시행령 제88조제2항.
- Coins held from before 2027the higher of the market price on 31 December 2026 and the actual acquisition cost is treated as the acquisition cost (제37조제5항)
- Trade recordsdownload fills and deposit/withdrawal history from each exchange
- Feestrading and withdrawal fees are deductible costs (제37조제1항제3호)
- Overseas exchangesnothing is reported automatically, so you must prove it yourself
Korean virtual asset businesses must file trade records with the tax office (제164조의4). The tax office will know first.
One thing to be clear about: this date has already moved three times. The 2022, 2023 and 2025 start dates were each postponed. The government says no more delays, but with a deferral bill in the Assembly 2027 could still go the same way. This page changes when the law does.
In short: under current law, from 2027 crypto gains above ₩2.5M a year are taxed separately at 22%, and to deduct acquisition cost and fees you need records starting now.
The legal basis
Drawn from government announcements and the statutes themselves as primary sources, covering only the relevant part.
소득세법 제21조제1항제27호 (other income, virtual asset income)
In force Scheduled for 2027-01-01 (Act No. 17757 of 2020-12-29, postponed three times by later amendments)
Income arising from the transfer or lending of a virtual asset under Article 2(1) of the Virtual Asset User Protection Act (virtual asset income) is other income.
What this means
🔴 Lending (staking, lending programs) is included, not just sales. A coin-to-coin swap is a transfer.
소득세법 제37조제1항제3호 (necessary expenses for other income)
In force Scheduled for 2027-01-01
For virtual asset income, the actual acquisition cost of the asset transferred and the incidental costs of acquiring, transferring or lending it are necessary expenses.
What this means
Without proof of the actual acquisition cost, nothing is deducted. Trade records and fee statements are the tax.
소득세법 제64조의3제2항 (tax on virtual asset income)
In force Scheduled for 2027-01-01
The tax on income under Article 21(1)27 is the virtual asset income less ₩2,500,000, multiplied by 20/100.
What this means
That one line is the whole formula. Subtract ₩2.5M once, then 20%. No brackets.
소득세법 제84조제3호 (minimum taxable threshold for other income)
In force Scheduled for 2027-01-01
Where virtual asset income for the tax year is ₩2,500,000 or less, no income tax is charged on it.
What this means
Up to ₩2.5M for the year the tax is zero. It is an annual total, not per trade.
소득세법 제14조제3항제8호다목 (excluded from global income)
In force Scheduled for 2027-01-01
Virtual asset income under Article 21(1)27 is not combined when computing the global income tax base.
What this means
Separate taxation. Other income does not raise the rate, and a crypto loss cannot offset other income.
소득세법 제37조제5항 (deemed acquisition cost for pre-2027 holdings)
In force Takes effect 2027-01-01 (inserted 2020-12-29, last amended 2024-12-31)
For virtual assets already held before 1 January 2027, the acquisition cost is the greater of the market value as of 31 December 2026 and the actual acquisition cost.
What this means
🔴 Gains built up through the end of 2026 are not taxed. If the end-2026 market value is higher than what you paid, the higher figure is your cost basis.
소득세법 시행령 제88조제2항 (how that market value is measured)
In force Takes effect 2027-01-01 (inserted 2022-03-08, last amended 2025-02-28)
For assets handled by virtual-asset operators designated by the Commissioner of the National Tax Service, the value is the average of the prices each of them posted at 00:00 on 1 January 2027; otherwise it is the price posted by the operator at that same moment.
What this means
The statute says "as of 31 December 2026" but the reading is taken at 00:00 on 1 January 2027, which is the same instant across midnight. It is an average across designated operators, not one exchange.
지방세법 제103조의3 (local income tax rate)
In force In force
Local income tax on separately taxed income is charged at 10/100 of the income tax rate.
What this means
10% of 20% is two more points, 22% in total.
Frequently asked
Is it really from 2027?
That is what current income tax law says. Act No. 17757 (2020-12-29) originally started it in 2022; amendments in 2021, 2022 and 2024 pushed it to 2023, 2025 and then 2027. The Assembly could postpone again, so treat it as current law rather than settled.
Is the ₩2.5M per trade?
No. It is the total virtual asset income for the year. Article 84(3) exempts the year when that total is ₩2.5M or less.
Does swapping one coin for another count?
Yes, it is a transfer. Swapping Bitcoin for Ether transfers the Bitcoin, and the gain is measured at the market value at that moment.
What if I made a loss?
If the year's virtual asset income is zero or below there is no tax. But because it is taxed separately, the loss is not set against wages or business income, and current law has no carry-forward.
What about coins bought before 2027?
소득세법 제37조제5항 settles it. For coins held before 1 January 2027, the acquisition cost is the greater of the market value as of 31 December 2026 and what you actually paid, so gains built up through the end of 2026 are not taxed. Under 시행령 제88조제2항 that market value is the average of the prices posted at 00:00 on 1 January 2027 by the operators the National Tax Service designates.
Do overseas exchange gains have to be reported?
Yes, as a resident's income. Korean virtual asset businesses file trade records with the tax office (제164조의4); overseas exchanges do not, so you must prove acquisition cost and fees yourself.
Results are estimates based on the inputs and on the rules as at the stated date. They may differ from a lender's actual assessment, and the rules change often. Take professional advice before any decision that matters.