➡️ South Korea confirms 22% crypto tax will cover private wallets, foreign exchanges 🌐 South Korea has confirmed that taxable crypto income earned through overseas exchanges and private wallets will fall under its planned 22% digital asset tax when the regime takes effect on Jan. 1, 2027. Digital Asset reported on Aug. 20, citing government responses submitted to People Power Party lawmaker Kim Sang-hoon, that the Ministry of Economy and Finance and the National Tax Service said the location or custody method of a digital asset would not determine whether income from its transfer or lending is taxable. ⭐️ Under the current framework, income from digital assets will be classified as other income, with an annual basic deduction of 2.5 million won. Income exceeding that threshold will face a 20% national tax, rising to a maximum combined rate of 22% after local income tax. The government also maintained that the tax should take effect on schedule next year, even as the People Power Party continues to call for its abolition or another delay. ⚡️ The National Tax Service said income earned by South Korean residents through the transfer or lending of digital assets would remain taxable regardless of whether the assets were held on an overseas exchange or in a private wallet. The Finance Ministry gave a similar response, saying the tax treatment does not depend on whether the income originated domestically or overseas. Transactions made through private wallets will also be treated under the same principle.
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