Korea's National Tax Service launches virtual asset transaction tracking system construction with a budget of 3 billion KRW, taxing from 2027 onwards

Gate News reports that on March 12, the Korea National Tax Service (NTS) announced the start of building a tracking system for cryptocurrency investment profits, in line with government expansionary fiscal policies and increased revenue needs. The system’s development comes just before the government’s plan to start taxing virtual asset profits from January 2027.

The NTS has issued a tender for the “Virtual Asset Transaction Analysis Integrated System” project, which was posted on its electronic bidding platform by the Procurement Office. The project budget is 3 billion Korean won (approximately $202 million). The winning bidder will be selected and contracted within this month. System design will begin in April, with multiple testing phases, and the system is expected to enter trial operation in November before going live later this year.

Starting in 2027, the system will collect individual virtual asset transaction data, systematically managing and analyzing large volumes of transaction information to detect tax evasion, including identifying hidden income through tax audits. The NTS plans to incorporate artificial intelligence and machine learning technologies to analyze and track abnormal transaction types and patterns. Data related to virtual asset analysis and lists of suspects will be shared with other government agencies such as the Korea Customs Service, Statistics Korea, and the Bank of Korea.

According to Korean tax law, from January 2027, virtual asset annual gains exceeding 2.5 million Korean won will be subject to a combined tax rate of 22% (including 20% income tax and 2% local income tax).