The South Korean National Tax Service has started preparations for taxing virtual assets, with plans to implement it next year

The Korean National Tax Service has initiated preparations for the taxation of virtual assets, aiming for formal implementation in January 2027, and is preparing for comprehensive income tax declarations in May 2028.

According to the current income tax law, income from the transfer and leasing of virtual assets will be classified as "other income," with a tax rate of 22% applied to the portion of annual income exceeding 2.5 million won, affecting approximately 13.26 million people. The Korean National Tax Service plans to obtain data from exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax starting next year to improve the tax collection infrastructure and promote the launch of a comprehensive analysis system for virtual assets within the year. However, controversies surrounding the taxation standards and the risk of capital outflow continue.