S.Korea Taxes Cryptos: Drafting Notice Targets January 2027 Implementation

South Korea's National Tax Service is moving forward with plans to implement virtual-asset taxation by January 2027. As part of this effort, they have begun drafting an administrative notice that will set standards for virtual-asset taxation.

The notice will cover acquisition-cost calculations and tax treatment for various types of digital-asset transactions, including staking, airdrops, hard forks, and token swaps. The agency also plans to check whether newer transaction types have emerged and draw up detailed standards for them.

Under the current income tax law, income from the transfer or lending of virtual assets will be classified as other income and taxed starting January 1, 2027. Annual income above 2.5 million won ($1,810) will be subject to a 22% rate, combining a 20% tax on other income and a 2% local income tax.