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South Korea weighs a fourth delay of its 22% crypto gains tax, to 2029, because U.S. trade data won't arrive until then
Summary
South Korea's presidential office is leaning toward pushing its crypto gains tax, now due Jan. 1, 2027, back to 2029, which would be its fourth postponement, The Block, CoinDesk and Bitcoin Magazine reported on Oct. 26, citing local outlet Newsis.
Officials worry the burden would fall mostly on users of Korean exchanges, because the U.S. does not start sharing crypto trading data under the OECD's Crypto-Asset Reporting Framework until 2029, CoinDesk reported.
The tax would be 20%, or 22% with local income tax, on annual crypto gains above a 2.5 million won deduction, and any delay needs parliament to amend the law, with a decision expected between late November and early December.
Nothing is final yet: the National Tax Service still lists Jan. 1, 2027 as the start date, per CoinDesk.
Updates
- Update, : Update: Cointelegraph also reported that Seoul is weighing another delay of the crypto tax, citing concerns about receiving data from U.S. officials.
- Update, : Update (Nov. 4): Democratic Party leader Kim Min-seok formally proposed that the government delay the crypto tax again, saying the country should first enact the Digital Asset Basic Act and give companies and investors time to adapt, The Block reported, citing News1. He said the party would set a clear deferral period this time, but no new start date was given in the report, and parliament still has to approve any change.
- Update, : Update (Nov. 5): Finance Minister Lee Hyoung-il said Thursday the government backs postponing the 22% crypto gains tax again to 2029 and will consult lawmakers on moving the January 2027 start date, Cointelegraph reported. Officials tied the timing to CARF information exchange with the U.S. beginning in 2029, said they plan a three-year loss carryforward, and said tax-system amendments would go to parliament's 2027 session with detailed guidelines in the first half of 2028—reversing a May stance that 2027 implementation would proceed.
- Update, : Update (Nov. 5, afternoon): The government will ask lawmakers to delay the 22% tax to 2029 and let investors carry losses forward for up to three years, Bitcoin Magazine reported.
Key facts
- The tax was first scheduled for 2022 and was pushed to 2023, 2025 and then 2027.
- An official told Newsis that 'almost half of the crypto market is the U.S.,' calling the lack of U.S. tax data the biggest obstacle.
- South Korea, Japan and the U.K. begin exchanging CARF data in 2027, Singapore, Switzerland and Hong Kong in 2028, and the U.S. in 2029.
- Democratic Party lawmaker Park Min-gyu and 13 colleagues filed a bill on Oct. 16 that would push the start to 2029, while People Power Party lawmaker Song Eon-seok filed a bill to scrap the tax provisions.
- The delay reportedly aims to align with the U.S. schedule for joining CARF.
- Parliament must approve an amendment, with a final decision expected by early December.