Crypto capital gains tax is scheduled to take effect from January 1, 2027
Calculate your estimated tax based on the scheduled rules.
Calculate capital gains tax on cryptocurrency trades
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When you sell cryptocurrency at a profit, you must pay capital gains tax. All virtual assets including Bitcoin and Ethereum are subject to taxation, covering not only exchange trades but also peer-to-peer transactions.
The tax rate is 22% (20% capital gains tax + 2% local income tax), with an annual basic deduction of approximately $2,500 (KRW 2.5 million).
Capital Gains = Sell Total - Buy Total - Fees
Taxable Base = Capital Gains - Basic Deduction (KRW 2.5M)
Capital Gains Tax = Taxable Base x 20%
Local Income Tax = Capital Gains Tax x 10%
Total Tax = Capital Gains Tax + Local Income Tax
The buy total is the actual amount paid to purchase crypto, and the sell total is the amount received from selling. Transaction fees from both buying and selling can be combined and deducted as necessary expenses.
Crypto taxation was originally scheduled for 2022 but has been postponed multiple times due to inadequate investor protection measures. It is currently scheduled to take effect on January 1, 2027, with gains from transactions after that date subject to taxation.
Even before the tax takes effect, it is advisable to calculate your estimated taxes and plan your investment strategy in advance. This is especially important if you anticipate significant profits.