Korea's crypto taxation won't affect year-end personal exemptions

Ahead of the Jan. 1, 2025 start date for taxing virtual assets in South Korea, the National Tax Service said that gains from cryptocurrency transactions will be taxed separately and will not impact personal exemptions made at year-end settlement, according to The Korea Economic Daily. This separate taxation means that those who make capital gains from cryptocurrency investments are unlikely to see an increased tax burden. Concerns were raised that spouses and dependents receiving exemptions may not receive tax savings at the end of the year if they earn more than KRW 1 million ($724) annually from investing in virtual assets. Income from investing in virtual assets is considered "other income that is subject to separate taxation" and is excluded from the criteria for calculating personal tax credits, the media explained.