South Korea Plans November Crypto Tax Guidelines

South Korea’s National Tax Service (NTS) announced plans to issue cryptocurrency tax guidelines in November, ahead of the country’s scheduled 22% tax on qualifying digital asset gains beginning January 1, 2027, according to CryptoNews.

Cryptocurrency income taxation is scheduled to begin after three previous implementation delays. Investors face a combined 22% tax on qualifying annual cryptocurrency gains exceeding 2.5 million won. Tax officials are currently reviewing how staking, airdrops, hard forks, and decentralized finance transactions should qualify.

Implementation and Compliance

During an October 13 parliamentary audit, NTS Commissioner Lim Gwang-hyeon told lawmakers that preparations were underway to publish detailed taxation standards. The agency is working with cryptocurrency exchanges including Upbit, Bithumb, Coinone, DigitalX, and Gopax, alongside the Ministry of Finance and Economy, to prepare reporting and calculation systems.

Tax officials face questions over exchange readiness, transaction records, and the treatment of activity occurring outside regulated domestic trading platforms. Lim stated that the Organisation for Economic Co-operation and Development’s Crypto-Asset Reporting Framework would improve the exchange of transaction information, though tracking private wallet transfers remains a challenge.

Key facts

• South Korea’s NTS plans to issue crypto tax guidelines in November.
• A 22% tax on qualifying cryptocurrency gains exceeding 2.5 million won takes effect on January 1, 2027.
• First cryptocurrency income tax returns are expected in May 2028 for taxable transactions during 2027.
• Tax authorities are reviewing rules for staking, airdrops, hard forks, and decentralized finance transactions.