Complete Guide to Calculating Crypto Profit and Loss (PnL) and Filing Taxes — Latest 2026

Key Takeaways

• Virtual asset capital gains tax has applied since 2025: a 20% tax on annual gains above KRW 2.5 million

• PnL = (selling price − purchase price) × quantity − fees

• Loss carryforward deduction: current-year losses can be carried forward for 5 years and deducted from future profits

What Is Crypto PnL (Profit and Loss)? PnL (Profit and Loss) is the actual gain or loss from a virtual asset investment. It falls into two main categories. Realized PnL: Profit or loss from a position you have sold or closed. This is the figure used for tax calculations. Unrealized PnL: Gains or losses on positions you still hold. These are not taxed until they are realized. Basic PnL Calculation Formula:

PnL = (selling price − average purchase price) × quantity − total fees Example:

• Buy 0.1 BTC of Bitcoin at $50,000 → Cost: $5,000
• Sell 0.1 BTC at $65,000 → Proceeds: $6,500
• Total fees: $15
• PnL = $6,500 − $5,000 − $15 = $1,485 (about KRW 2 million) If you need to calculate the average unit price across multiple trades, try the Crypto PnL Calculator.

Virtual Asset Taxes — Latest 2026 Tax Rules Virtual asset capital gains tax has been in effect since January 1, 2025. Here are the main rules to know. Taxable assets: Gains from transferring virtual assets, including Bitcoin, Ethereum, and altcoins, through sales, exchanges, or transfers Tax Rate Structure:

• Basic deduction: KRW 2.5 million per year
• Separate 20% tax on amounts exceeding KRW 2.5 million (22% including local income tax)
• Annual profits of KRW 50 million or more: the same tax rate applies (unlike general financial income) Calculation Examples:

If annual crypto profit is KRW 10 million:

• Basic deduction: KRW 2.5 million
• Taxable amount: KRW 7.5 million
• Tax: KRW 7.5 million × 22% = KRW 1.65 million If annual crypto profit is KRW 50 million:
• Basic deduction: KRW 2.5 million
• Taxable amount: KRW 47.5 million
• Tax: KRW 47.5 million × 22% = KRW 10.45 million

6 Tax Minimization Strategies 1. Use Loss Offsetting

Use losses from other coins in the same year to reduce taxable gains.

• Coin A profit of KRW 5 million + Coin B loss of KRW 2 million = net profit of KRW 3 million
• Deduct the basic deduction of KRW 2.5 million → taxable amount of KRW 500,000 → tax of KRW 110,000 2. Loss Carryforward Deduction

If you record a loss in the current year, you can carry it forward for 5 years.

• 2025 loss of KRW 5 million → can deduct KRW 5 million from 2026 profits 3. Spread Realized Gains Across Years

If you expect to realize a large profit in December, consider deferring part of the sale until January so the gain is split across tax years. 4. Sell After Gifting (Family Tax Planning) If you gift crypto to a spouse or direct family member, the value at the time of the gift becomes the acquisition cost. 5. Check Overseas Exchange Reporting Obligations If your balances on overseas exchanges such as Binance or Bybit are KRW 500 million or more, you must report overseas financial accounts. Failure to report may result in penalties. 6. Long-Term Holding Strategy (However, Crypto Has No Long-Term Holding Deduction) Unlike capital gains tax rules for major shareholders of stocks, virtual assets currently do not receive long-term holding tax benefits. The 22% rate applies regardless of the holding period. To manage liquidation risk as well, see the Liquidation Price Calculator.

National Tax Service Virtual Asset Filing Procedure Filing Period: May 1 to May 31 every year (same as comprehensive income tax filing) How to File:

1. 1Access National Tax Service Hometax (hometax.go.kr)
2. 2Tax filing → Comprehensive income tax filing → Select separately taxed virtual assets
3. 3Enter transaction history (CSV file upload available)
4. 4Calculate tax amount and pay Required Documents:

• Transaction history CSV by exchange (annual)
• Proof of acquisition cost (purchase receipts, transaction history) Transaction History Retention: You are required to retain virtual asset transaction history for at least 5 years. If you want to calculate returns across your overall portfolio together with crypto profits, use the Capital Gains Tax Calculator.

Expert Key Summary Virtual asset taxation, in effect since 2025, is now part of crypto investing. You can legally reduce your tax burden by using the annual KRW 2.5 million basic deduction and applying loss offsetting and carryforward deductions where available. Download your exchange CSV files at year-end, then file through Hometax in May or have a tax accountant handle the filing.

FAQ Q1. If my crypto profit is KRW 2.5 million or less, do I not have to pay tax?

Yes. If your annual net profit (profits − losses − fees) is KRW 2.5 million or less, it is not taxable. However, you still need to file. Q2. Are crypto transfers between exchanges also taxable? Transfers between exchanges owned by the same person (Upbit → Bithumb) are not taxable. However, transfers to another person may be considered gifts. Q3. Are staking and interest income also taxed? Staking rewards and interest income may be taxed as other income. For accurate classification, consult a tax accountant. Q4. Do I not need to report taxes for overseas exchanges? No. Profits from overseas exchanges are also subject to domestic tax law. The National Tax Service is entering into information-sharing agreements with exchanges, so failure to report may lead to additional tax collection. Q5. If my crypto losses are large, can they also be deducted from comprehensive income tax? Under current law, virtual asset losses cannot be deducted from gains on stocks or real estate. Profit and loss offsetting applies only within virtual assets. Q6. How is Bitcoin mining income taxed? Mining income is classified as business income or other income. Since mining costs such as electricity and equipment depreciation can be treated as expenses, registering as a business and filing that way may be advantageous.