South Korea may push its 22% tax on crypto gains all the way to 2029, after already delaying it three times since 2020. The delay would spare traders from the levy until 2029, but the final decision is still weeks away.
Key points:
- South Korea is likely to delay its crypto gains tax for a fourth time, possibly to January 1, 2029, according to local outlet Newsis.
- The levy would charge 22%, including local tax, on yearly gains above 2.5 million won (about $1,888).
- A ruling-party bill already proposes the 2029 start, with a final decision expected in late November or early December.
South Korea's presidential office is reportedly discussing a further delay with relevant government agencies. The tax is currently scheduled to take effect on January 1, 2027, but the new plan would line it up with the United States schedule for CARF, the OECD's international tax framework for digital assets.
The timing gap is the key problem. South Korea is set to start exchanging crypto transaction data under CARF in 2027, while the United States is scheduled to start in 2029. A presidential office official reportedly said the unavailability of United States trading data is the biggest bottleneck, since authorities would need to track overseas transactions one by one.
Read also: South Korea Plans Forex Law Change to Legalize Stablecoin Payments — Why?
South Korea first introduced the crypto tax plan in 2020 through an amendment to the Income Tax Act. It was originally set for 2022, but it has already been delayed three times as traders and experts raised concerns over tax infrastructure and investor protection.
What happens next?
The government is expected to finalize its position through inter-agency consultations. A final decision is likely to come through National Assembly tax law revisions, with discussions expected between late November and early December.
For traders, a delay to 2029 would remove a near-term deadline that has hung over the market for years. But nothing is final yet, and the 2027 start date stays in place until lawmakers actually change the law.
Read also: IRS Clears Crypto Tax Disclosures in 120 Days, Cuts Penalties — What's Next?
— BitByLine News Desk
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: The Block