South Korea finalizes its plan to charge 20% tax on crypto gains

The government of South Korea has finalized its plan to charge a 20% tax on income generated from cryptocurrency transactions.

The country's Ministry of Economy and Finance amended its tax code on Wednesday, saying that an annual income of more than 2.5 million won (~$2,000) from crypto trading will be subject to a 20% tax for residents. Any income less than that amount will have no charge.

Start your day with the most influential events and analysis happening across the digital asset ecosystem.

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

The revised tax code, which is subject to parliamentary approval, would come into effect from October 1, 2021. The ministry will submit the code for National Assembly approval before September 3.

South Korea had been planning to levy taxes on crypto income for over six months. The ministry has now finalized its classification of crypto gains as "other income" for tax purposes. 

About Author

Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.