South Korea Builds ₱118.56 million ($2 million) AI Platform to Track Crypto Tax Evasion
South Korea's National Tax Service is investing ₱118.56 million ($2 million) to build an AI system that will analyze blockchain data and flag tax evasion patterns before the country's crypto income tax law takes effect.
Key Takeaway
AI tax tracking goes live a year before South Korea's 20% crypto tax hits in 2027.
South Korea's National Tax Service is investing ₱118.56 million ($2 million) to build an AI-powered monitoring system that will analyze crypto transactions across the country's five permit-holding exchanges.
The platform will track airdrops and staking rewards in tax calculations. Individuals who fail to declare profits correctly could face additional taxes and heavy surcharges from the NTS.
The contractor will be selected on April 14 and has eight months to complete the platform. Beta testing is scheduled for November, with an official launch targeted for December 2026.
South Korea's crypto taxation law comes into force on January 1, 2027, imposing a 20% income tax on crypto trading profits and a 2% tax rate on gains over ₱100,773 ($1,700). Lawmakers first voted to introduce crypto taxation in 2020 and have delayed implementation three times since then. The December launch gives the NTS a full year to test the monitoring system before the tax law takes effect on January 1, 2027.
This article was written based on reporting from Dlnews.
