The Korean National Tax Service launches a virtual asset transaction tracking system to pave the way for taxation in 2027.
BlockBeats News, March 12 — The National Tax Service (NTS) of South Korea announced on Thursday that it has begun constructing a tracking system for cryptocurrency investment gains. This move aims to support the government's expansionary fiscal policy and the need to increase fiscal revenue. The system is being built ahead of the government's plan to start taxing profits from virtual assets beginning January next year.
According to the announcement, the NTS has initiated a bidding process for the "Comprehensive Virtual Asset Transaction Analysis System" project. The project was published by the Public Procurement Service, which is responsible for government and public institution procurement, on its electronic bidding platform, with an amount of 3 billion Korean won (approximately 2.02 million US dollars).
As planned, the winning bidder will be selected and contracted within this month. System design will commence in April, followed by multiple rounds of testing, with trial operation scheduled for November and official launch expected within the year.
The NTS stated that starting from 2027, the system will begin collecting individual virtual asset transaction data. Through systematic management and analysis of massive transaction information, it aims to more effectively detect tax evasion, including identifying hidden income of delinquent taxpayers through tax audits.
Notably, the NTS plans to introduce artificial intelligence and machine learning technologies to analyze and track abnormal transaction types and patterns. Relevant virtual asset analysis data and lists of suspects will be shared with other government departments, including the Korea Customs Service, Statistics Korea, and the Bank of Korea.
According to Korean tax law, starting from January next year, the portion of annual virtual asset gains exceeding 2.5 million Korean won will be subject to a comprehensive tax rate of 22% (including 20% income tax and 2% local income tax).
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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