TechFlow News, April 29: According to Edaily, South Korea’s National Tax Service has initiated preparations for taxing virtual assets, aiming for formal implementation in January 2027 and readiness for comprehensive income tax filing in May 2028. Under the current Income Tax Act, gains from virtual asset transfers and leasing will be classified as “other income,” subject to a 22% tax rate on annual earnings exceeding KRW 2.5 million—expected to affect approximately 13.26 million individuals.
The National Tax Service plans to begin collecting data from cryptocurrency exchanges—including Upbit, Bithumb, and Coinone—as early as next year to strengthen its tax infrastructure and aims to launch a comprehensive virtual asset analytics system by year-end. However, debates continue regarding taxation criteria and risks of capital outflow.
