South Korean Government Proposes Tough New 22% Tax on Crypto Trading

Crypto trading profits could be liable to a 22% tax should the Korean National Assembly approve the newly tabled proposal.

Jul 22, 2020 at 11:32 a.m. UTC
Updated Sep 14, 2021 at 9:34 a.m. UTC

The South Korean government has proposed obliging crypto investors to pay more than a fifth of their profits to the state.

  • The Ministry of Economy and Finance tabled a proposal Wednesday to introduce a 22% tax – including the 2% local income tax – on crypto trading profits above 2.5 million KRW (~$2,000).
  • If approved by Korea's National Assembly, the tax rule will come into force in October 2021.
  • The new tax rule will also apply to non-residents and foreign companies who trade on Korean exchanges.
  • The news was originally reported by CoinDesk Korea.
  • Traders will be obliged to keep accurate records of their crypto activity and file with the National Tax Service at the end of the tax year on May 31.
  • Profits will be based on the difference in the asset's won price at the time of acquisition and time of sale – if the trader doesn't know the acquisition price, it will be assumed to be 0 won.
  • The government says the new tax rule is needed as many other countries have also introduced their own regimes for cryptocurrencies.
  • Cryptocurrency trading profits in the U.S. count as capital gains, where individuals can pay up to 25% in tax.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
The Metaverse Will Make Gamers of Us All

Fundamentally, the "metaverse" is a game – but one with real consequences and opportunities. This article is part of "Metaverse Week."

Fundamentally, the "metaverse" is a game – but one with real consequences and opportunities. This article is part of "Metaverse Week."

CoinDesk - Unknown
2
CoinDesk - Unknown
Fed Survey: 12% of US Adults Held Crypto in 2021

It marks crypto’s first appearance in the central bank’s “Economic Well-Being of U.S. Households” survey.

It marks crypto’s first appearance in the central bank’s “Economic Well-Being of U.S. Households” survey.

CoinDesk - Unknown
3
CoinDesk - Unknown
Metaverse Real Estate – Next Big Thing or Next Big Boondoggle?

Highly-prized pots of land are fetching fortunes on the biggest platforms. How do the economics of metaverse real estate stack up?

Highly-prized pots of land are fetching fortunes on the biggest platforms. How do the economics of metaverse real estate stack up?

CoinDesk - Unknown
4
CoinDesk - Unknown
DESK Is Back: CoinDesk Relaunches Social Token Into the Wild

After beta testing it last year, we’re rolling out DESK as an integral part of the experience at Consensus 2022 – and beyond.

After beta testing it last year, we’re rolling out DESK as an integral part of the experience at Consensus 2022 – and beyond.

CoinDesk - Unknown