South Korea‘s National Tax Service (NTS) plans to finalize its draft administrative notice on cryptocurrency taxation by October 30, 2026, as the government weighs whether to proceed with the long-delayed tax regime scheduled to begin on January 1, 2027.
According to local reports published October 22, the tax authority intends to request a preliminary regulatory review on November 6, followed by a formal administrative notice on November 30. The process will include public consultation and further examination before the proposed rules take effect.
The timetable represents a significant administrative milestone but does not confirm that taxation will begin as scheduled. Finance Minister Lee Hyoung-il said during parliamentary proceedings that the government would consider industry concerns, expert recommendations and lawmakers’ views before reaching a final decision.
Under existing legislation, South Korea plans to impose a 20% national tax on qualifying annual cryptocurrency income exceeding 2.5 million won, alongside an additional 2% local income tax. The combined effective rate would be 22%.
The framework was introduced in 2020 but has already experienced three postponements, reflecting persistent disagreements over implementation readiness, investor protections and the treatment of different cryptocurrency transactions.
Tax Authority Advances Rules Despite Implementation Concerns
The October 30 deadline follows consultations between government officials and cryptocurrency industry representatives on October 20.
First Vice Finance Minister Kwon Dae-young met representatives from domestic exchanges, including Upbit operator Dunamu, Bithumb and Coinone, alongside industry associations and external experts. Participants raised concerns about calculating acquisition costs, tracking transactions across overseas exchanges and establishing consistent taxation standards for cryptocurrency activities.
The NTS has also been examining the treatment of staking rewards, cryptocurrency lending, airdrops, hard forks and decentralized finance transactions. These activities present complications because existing legislation was largely developed around conventional cryptocurrency purchases and sales. Determining when taxable income arises and how acquisition costs should be calculated remains particularly challenging.
During an October 13 parliamentary audit, NTS Commissioner Lim Kwang-hyun acknowledged preparations for a November notice while lawmakers questioned whether the necessary systems could be completed before implementation.
If the existing schedule remains unchanged, taxable cryptocurrency income generated during 2027 would generally be declared in May 2028.
Lawmakers Consider Fourth Delay as 2029 Proposal Emerges
The administrative timetable comes amid renewed legislative pressure to postpone taxation for a fourth time. A proposal introduced by lawmakers from the ruling Democratic Party on October 16 seeks to delay implementation until 2029, allowing additional time to establish cryptocurrency reporting infrastructure and cross-border information-sharing arrangements.
Other lawmakers have proposed postponements or outright repeal of the tax provisions. Supporters of delaying implementation argue that incomplete transaction records could create unequal treatment between investors using domestic exchanges and those trading through offshore platforms or self-custody wallets.
However, proceeding in January would end years of uncertainty surrounding cryptocurrency income taxation and bring South Korea closer to jurisdictions that already tax digital asset gains. The government’s position remains unresolved. Although the tax authority is advancing its administrative preparations, any further postponement would require legislative changes.
The October 30 draft deadline and subsequent November review will therefore test the country’s operational readiness without settling the larger political question. For cryptocurrency investors and exchanges, January 1, 2027, remains the legally scheduled implementation date unless the National Assembly approves another amendment before year-end.
