South Korea Prepares Tax Rules for Cryptocurrency

The National Tax Service of South Korea (NTS) announced plans to issue cryptocurrency taxation guidelines in November 2026. An introductory 22% tax on income from qualified digital assets will take effect on January 1, 2027. NTS expects to publish cryptocurrency taxation guidelines in November before the new rules come into effect. Taxation of cryptocurrency income will begin on January 1, 2027, following three previous implementation delays. Investors will face a total tax of 22% on cryptocurrency income exceeding 2.5 million won per year.

Tax officials are considering how income from staking, airdrops, hard forks, and decentralized finance transactions should be classified. The first cryptocurrency income tax filings are expected in May 2028 for taxable transactions conducted in 2027. During a parliamentary audit on October 13, NTS Commissioner Lim Gwan-heon informed lawmakers that preparations for publishing detailed tax standards are in full swing. The discussion followed questions about how authorities will calculate income from staking, airdrops, hard forks, and decentralized finance.

Lim noted that the tax service is working with cryptocurrency exchanges and the Ministry of Finance and Economy to prepare the necessary systems. During the audit, committee members questioned whether there are clear taxation standards for various cryptocurrency operations and how they will be aligned. The committee also discussed potential difficulties in obtaining data from crypto exchanges necessary for calculating taxable income. Lim added that NTS is ready to engage in discussions with crypto exchanges to prepare reporting systems. Crypto exchanges mentioned at the hearings include Upbit, Bithumb, Coinone, DigitalX, and Gopax. Despite ongoing debates about the timing of the tax introduction, the current schedule remains in place, while lawmakers continue to review the tax framework. Existing cryptocurrency taxation rules are set to take effect on January 1, 2027, and NTS expects investors to start filing cryptocurrency income tax returns in May 2028.