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- South Korea’s presidential office is reportedly considering another cryptocurrency tax delay.
- Lawmakers proposed moving the implementation start date from January 2027 to 2029.
- No final decision has been reached regarding the potential tax implementation extension.
South Korea’s presidential office is reportedly leaning toward another crypto-tax delay, as lawmakers propose a 2029 start instead of January 2027.
No final decision has been made. The tax remains scheduled to begin on January 1, 2027.
Lawmakers Propose 2029 Start After Three Tax Delays
Park Min-gyu of the ruling Democratic Party has proposed allowing authorities more time to obtain overseas trading records and prepare the systems needed to collect the tax.
The tax was introduced through a 2020 amendment to the Income Tax Act and was originally due to begin in 2022. Implementation has already been postponed three times. Another extension would be the fourth.
The presidential office said on Oct. 25 that a postponement was under review. Government and ruling-party discussions are expected after this month’s parliamentary audits conclude. The opposition People Power Party also supports postponement, adding to the political pressure to reconsider the timetable.
People’s Solidarity for Participatory Democracy opposed another delay, arguing that repeated postponements undermine the consistency and predictability of tax policy.
Park’s proposal links implementation to January 1 of the second year after the first international exchange of crypto transaction information. With those exchanges expected to begin in 2027, that would point to January 1, 2029.
Overseas Data Gaps Drive Calls to Delay Crypto Tax
The presidential office’s reported concerns center on whether authorities can obtain sufficient information about transactions on foreign exchanges. Officials worry that incomplete overseas records could leave users of domestic platforms facing closer scrutiny than investors trading abroad.
The Crypto-Asset Reporting Framework, known as CARF, is intended to improve that visibility. Participating jurisdictions collect information from crypto service providers and automatically exchange it with tax authorities in their customers’ jurisdictions of residence.
South Korea has committed to begin exchanges by 2027. The United States has committed to begin by 2029, leaving a gap in the rollout involving a major crypto market.
Presidential officials have pointed to that gap as a reason to reconsider the tax’s timing. Their concern is the ability to identify and verify overseas activity, rather than a rule that limits taxable income to Korean exchanges.
Planned Crypto Tax Sets 22% Rate Above 2.5 Million Won
For South Korean tax residents, the planned system applies to qualifying income from selling, swapping, or lending crypto assets. Acquisition costs and related expenses are deducted before an annual allowance of 2.5 million won. Income above that allowance faces a combined 22% national and local tax rate.
Annual gains and losses are combined for reporting, with returns due during the following May’s income-tax filing period. If the current timetable remains in place, the first returns covering 2027 activity would be filed in May 2028.
For assets already held before implementation, the existing rules use the higher of the original acquisition cost or the asset’s market value on December 31, 2026, when calculating the acquisition value.
Changing the start date requires an amendment to the Income Tax Act. Parliamentary tax-bill discussions are expected in November, when lawmakers will consider whether to retain the 2027 timetable or approve another postponement.
