NTS to Establish Taxation Guidelines for Virtual Asset Staking and Airdrops... Preparing for 2027 Implementation

As of July 14, 2026, Bitcoin is stabilizing around the $62,600 mark, but the domestic financial market appears unstable. Amid external variables such as former President Donald Trump's threat of an attack on Iran and falling gold prices, the KOSPI index has plummeted, leading domestic investors to leave the stock market and move funds into the virtual asset market. Consequently, trading volumes on major domestic exchanges like Upbit and Bithumb are surging, and global market activity is also high, with the U.S. government moving approximately $288 million worth of seized virtual assets to Coinbase Prime.

These taxation guidelines are a measure to establish the practical foundation for the 22% virtual asset income tax system, which will take effect on January 1, 2027, and to minimize confusion among investors.

The National Tax Service (NTS) plans to announce detailed guidelines during 2026 to clarify taxation standards for assets that do not have a traditional purchase price, such as staking rewards or airdrops. Currently, authorities are considering a realization principle that calculates income based on the market price at the time the reward is received. This approach differs from the 'no gain, no loss' principle recently introduced by the UK's HM Revenue and Customs (HMRC) for liquidity pool transactions, which defers taxation until an economic disposal occurs.

Key Details of the 2027 Virtual Asset Taxation Framework

According to the amended Income Tax Act, income generated from the transfer and lending of virtual assets will be classified as 'other income' starting January 1, 2027. If annual virtual asset income exceeds 2.5 million KRW (approximately $1,800), a total tax rate of 22% will be applied, combining a 20% national tax and a 2% local income tax. Profits generated until the end of 2026 will not be taxed, in accordance with existing deferral policies.

• Application of a 2.5 million KRW annual income deduction limit and taxation on the excess
• Classification as other income and combined taxation of 22% (20% national tax + 2% local tax)
• Realized gains from exchanges between virtual assets are also included in the scope of taxation
• The first tax filing and payment will take place during the final return period in May 2028

Practical remedies have also been prepared for cases where investors cannot prove past acquisition records. The NTS plans to allow tax calculations by considering up to 50% of the transfer value as the acquisition cost if supporting documents are unavailable. This measure is intended to alleviate the excessive tax burden on long-term holders or investors who find it difficult to prove acquisition costs due to data loss.

Approximately 13.26 million investors currently using Upbit, Bithumb, Coinone, and others are expected to be directly affected by this taxation framework. The NTS is building a reporting system to receive regular transaction data from exchanges, aiming to increase taxation transparency. Investors must aggregate all trading and lending income generated throughout 2027 and complete their first tax filing in May 2028.