South Korea plans to postpone its crypto tax on investment gains until 2029, two years later than scheduled. Finance Minister Lee Hyoung-il announced the proposal on November 5, citing overseas reporting gaps and unfinished tax rules.
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During a Seoul briefing, Lee said the government would consult the National Assembly about the new deadline. The proposal marks a fourth delay to the framework introduced in 2020. Its current start date remains January 1, 2027.
Why South Korea Wants Another Crypto Tax Delay
The proposed tax on cryptos would impose a tax rate of 22% on annual gains over 2.5 million won ($1,869) for investors. The tax rate would include both the national and local income tax rates. Gains under the allowance would not attract any tax.
An example is annual gains of 5 million won, out of which 2.5 million won would be taxed at a 22% tax rate. South Korea implemented the taxation rules in 2020, with an initial target of imposing the crypto tax in January 2022. Later, the government shifted its implementation date to 2023, 2025, and 2027. The recent proposal would have the crypto tax implemented by 2029.
Lee stated that the repeated delays had been experienced as he made the announcement on November 5. He explained that this extra time would give enough time for the government to prepare for implementing the new system.
How US Data Sharing Affects Crypto Tax Collection
The South Korean government anticipates the swap of crypto transactions’ details between itself and the U.S. starting in 2029. This timeline served as one of the key factors behind the delay decision. The government believes that otherwise it would put national players at a disadvantage.
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In particular, the CARF (Crypto Asset Reporting Framework) is among the measures taken by the government. The government will seek to improve the way domestic and international documents are integrated.
International documents come into play when it comes to calculating profit from assets traded via foreign exchanges. Lack of records regarding purchases may make the task of acquiring more difficult. It resulted in fears of unequal treatment of domestic and international investors.
The crypto tax timeline is also connected to the elaboration of more comprehensive legislation regulating digital assets. The government plans to introduce new rules for the industry via legislation. It is expected to coincide with the Financial Services Commission.
What Three-Year Loss Deductions Would Change
Seoul aims to allow carryforward of losses for three years. The losses incurred during one year would then set off gains made in the subsequent years. This provision has been proposed but not made into law.
Price volatility was mentioned as the reason behind the proposed amendment, along with loss relief provisions adopted by the US and UK. The details of the amendment will be discussed with the legislators before determining the rules.
The public-private task force will comprise officials from the government, tax professionals, and members of the market. They will look at various transaction types, reporting processes, and filing requirements. The task force is expected to finalize their discussion on the policy by mid-2027.
When Lawmakers Will Decide the Crypto Tax Start Date
Amendments to be required will be presented during the regular session of the National Assembly in 2027. Furthermore, the publication of comprehensive tax guidance for cryptocurrencies will be made in the first part of 2028. These are to prepare the taxpayers for its implementation in 2029.
The proposal was introduced after discussions between lawmakers and exchanges regarding the deadline of January 2027. The law will stay in effect until such time as the law is changed in the National Assembly.
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Arslan Tabish is a Technical Reporter and Market Analyst at Tron Weekly with over five years of experience covering cryptocurrency markets and blockchain developments. His reporting focuses on Bitcoin, Ethereum, altcoins, and decentralized finance, alongside NFTs, crypto regulation, policy, and Web3 innovations.
Arslan covers blockchain technology, Layer 2 scaling solutions, and emerging use cases, including AI-driven crypto applications, while delivering clear market analysis on how technical and regulatory developments impact digital asset markets. His work is designed for both beginners and experienced readers, offering accurate, easy-to-understand reporting without speculation or investment guidance.
