South Korea will tax virtual currency activities as planned on January 1, 2022

On October 1, South Korea will impose taxes on virtual currency activities as originally planned on January 1, 2022. Virtual asset investors will need to report and pay relevant income earned in 2022 when submitting global income tax returns in May 2023.

Earlier news, in July 2020, South Korea released a draft of the proposed 2020 tax law amendment, stating that the South Korean government will include income obtained through virtual assets such as virtual currency into other income, and will impose a 20% capital gains tax on digital currency income exceeding 2.5 million won per year starting in October 2021. Those who need to pay virtual asset capital gains tax need to declare in May each year, which was later postponed to January 2022.