South Korea finalizes 2026 tax plan with no delay to crypto taxation

South Korea’s Ministry of Economy and Finance has finalized its 2026 tax revision plan without including a deferral of virtual asset taxation, The Asia Business Daily reported. Under the current Income Tax Act, income from virtual asset trading exceeding 2.5 million won ($1,800) a year is taxed at 20% on the excess amount, or 22% including local income tax. If the revision plan is finalized after parliamentary deliberation, taxation on capital gains from virtual assets will formally take effect in January 2027. The first filing and payment will take place in May 2028. The tax framework is already in place, and under the OECD’s Crypto-Asset Reporting Framework, or CARF, South Korea is set to secure overseas virtual asset trading databases from the tax authorities of 48 countries, including Japan, Germany and France, starting next year, which could substantially reduce tax gray areas.