Svmuu News The South Korean National Tax Service (NTS) announced on Thursday that it has begun preparations to build a tracking system for taxing cryptocurrency investment profits, in line with the government's expansionary fiscal policy and revenue enhancement needs. This move comes as the South Korean government plans to start levying taxes on virtual asset profits from January next year.
The National Tax Service has issued a tender announcement on the Public Procurement Service's electronic bidding platform, aiming to build an integrated system for analyzing virtual asset transactions and implementing corresponding taxation. The project budget is 3 billion won (approximately 2.02 million USD). The winning bidder will be selected and contracted within this month. System design will commence in April, and after multiple rounds of testing, a trial operation is scheduled to begin in November. The system is expected to be officially launched between November and December.
The National Tax Service stated that the system is expected to be used for collecting personal virtual asset transaction data starting in 2027. Through systematic management and analysis of large volumes of transaction data, it aims to enhance the detection capability of tax evasion. The National Tax Service plans to utilize AI and machine learning to analyze and track abnormal transaction types and patterns. It will also share virtual asset analysis data and lists of suspected violators with agencies such as the Korea Customs Service, the Statistics Korea, and the Bank of Korea.
Starting from January next year, virtual asset income exceeding 2.5 million won will be subject to a comprehensive tax rate of 22%, which includes a 20% income tax and a 2% local income tax.