2026.05.08
Infinite Block hereby provides the following information regarding the upcoming virtual asset income taxation regime under the amended Income Tax Act of the Republic of Korea, based on materials publicly disclosed by the National Tax Service (NTS). This notice is provided for informational purposes only. Infinite Block does not act as a withholding agent and does not perform tax filing on behalf of clients.
📌 Overview
| Effective Date | Applicable to transfers and lending of virtual assets occurring on or after January 1, 2027 |
| Legal Basis | Income Tax Act, Article 21(1)27 |
| Scope of Taxation | Income arising from the transfer or lending of virtual assets as defined under Article 2(1) of the Act on the Protection of Virtual Asset Users |
🔍 Taxation for Residents
① Income Classification & Tax Rate
- Classification: Other Income (subject to separate taxation)
- Tax rate: 20% (22% including local income tax)
- Basic deduction: KRW 2.5 million per year
② Filing & Payment
- Self-filing and payment by the taxpayer during the global income tax filing period in May of the following year
③ Calculation of Taxable Income
- Transfer price − (Acquisition cost + Incidental expenses)
- Acquisition cost valuation method: Moving average method for virtual assets traded through a virtual asset service provider (VASP); first-in first-out (FIFO) method for others
- Deemed acquisition cost for virtual assets held prior to enforcement: the greater of (i) market price as of December 31, 2026 or (ii) actual acquisition cost
🌐 Taxation for Non-Residents & Foreign Corporations
① Withholding Obligation
- Where a non-resident or foreign corporation transfers (sells/exchanges), lends, or withdraws virtual assets through a VASP, the relevant VASP shall bear the withholding tax obligation. (Income Tax Act, Article 156(16))
② Withholding Tax Amount
- MIN [ Transfer price × 10%, (Transfer price − Necessary expenses) × 20% ]
③ Application of Tax Treaties
- Residents of jurisdictions that have concluded a tax treaty with the Republic of Korea may apply for non-taxation or exemption by submitting a Non-Taxation/Exemption Application to the VASP. (Income Tax Act, Article 156-2)
🏦 Role of Infinite Block
Infinite Block is a Virtual Asset Service Provider (VASP) registered under the Act on Reporting and Use of Specific Financial Transaction Information, engaged in the business of virtual asset custody and management.
• Infinite Block performs the custody and safekeeping of clients’ virtual assets and does not intermediate the trading or exchange of virtual assets.
• Accordingly, Infinite Block does not constitute a withholding agent with respect to capital gains of resident clients. Calculation of trading gains and tax filing remain the sole responsibility of each client.
• Documentation required for tax filing (such as deposit/withdrawal records and balance certifications) may be requested through our client support channel.
• Infinite Block performs the custody and safekeeping of clients’ virtual assets and does not intermediate the trading or exchange of virtual assets.
• Accordingly, Infinite Block does not constitute a withholding agent with respect to capital gains of resident clients. Calculation of trading gains and tax filing remain the sole responsibility of each client.
• Documentation required for tax filing (such as deposit/withdrawal records and balance certifications) may be requested through our client support channel.
⚠️ Disclaimer
• This regime is scheduled for future enforcement. The effective date may be further deferred, and details such as the tax rate, deduction amount, and calculation method may be amended through subsequent legislative or regulatory changes.
• This notice is provided for general informational purposes based on publicly available NTS materials and currently effective laws. Clients are advised to consult a qualified tax professional regarding specific filing and tax treatment.
• Any updates will be communicated through subsequent notices on our website.
• This notice is provided for general informational purposes based on publicly available NTS materials and currently effective laws. Clients are advised to consult a qualified tax professional regarding specific filing and tax treatment.
• Any updates will be communicated through subsequent notices on our website.
📎 References
For inquiries regarding this notice, please contact us via the channels below.
Thank you.
