South Korea’s 2027 Crypto Tax Plan Faces Calls for Income Classification and Reporting Reform

  • South Korea’s 2027 virtual-asset tax regime faces calls for broader institutional and reporting reforms.
  • A 2.5 million won deduction applies before miscellaneous income is taxed at 20%, or 22% including local tax.
  • Park Jong-su identified seven taxable activity categories and criticized gaps in cross-platform transaction-record infrastructure.

South Korea’s virtual-asset tax regime is scheduled to begin on Jan. 1, 2027, but tax experts say major institutional and infrastructure gaps remain. Under the current Income Tax Act, gains from transferring or lending virtual assets are treated as miscellaneous income, with a 2.5 million won annual deduction and a 20% tax rate, or 22% including local income tax. A Sept. 3 National Assembly forum hosted by Democratic Party lawmaker Moon Jin-seok and organized by DAXA and the Korean Association of Tax Law also raised concerns about taxpayers having to consolidate records from exchanges, personal wallets and DeFi platforms. The Bitcoin World live AMA has begun, covering the likelihood of taxation beginning in 2027, key tax points, how to report holdings and transactions on overseas exchanges, DeFi, and airdrops, as well as tips on preparing acquisition cost records. Various prizes, including chicken, will be handed out through live drawings during the event.

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