South Korea's government wants to delay its crypto gains tax until 2029, aligning its start with planned tax information exchanges with the United States and allowing more time to write the rules.
South Korean Finance and Economy Minister Lee Hyoung-il announced the proposal Nov. 5. The government also wants investors to be able to carry losses forward for three years and apply them against later crypto gains. Both changes require legislation.
The tax remains scheduled to start Jan. 1, 2027. Under the current plan, annual crypto gains above about $1,869 would face a combined 22% tax. If approved, the delay would be the fourth postponement since South Korea first proposed taxing crypto gains in 2020.
The government says taxing crypto gains before the information exchange begins could put South Korea's domestic crypto market at a competitive disadvantage. It expects to begin exchanging crypto tax information with the United States in 2029.
Officials also plan to form a group with industry participants to clarify tax rules for different types of transactions. The government will seek National Assembly approval for the changes; until lawmakers act, the tax is still due to begin Jan. 1, 2027.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to [email protected].
