South Korea Announces Timeline for Virtual Asset Taxation

South Korea's Ministry of Economy and Finance has officially confirmed its plan to start taxing virtual asset income on January 1, 2027. This decision marks a significant step towards regulating the country's cryptocurrency market.

The tax rate for gains above 2.5 million won will be a combined 22%, including 20% income tax and 2% local income tax. The National Tax Service is preparing detailed guidance with major exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, to implement the new system.

The government has rejected proposals to delay the implementation of virtual asset taxation, citing the existing Income Tax Act amendment from 2020. The tax agency is also building systems to receive crypto trading data from domestic platforms, with the first full tax filing period expected in May 2028.