South Korea seeks 4th crypto tax delay, targets 2029 start

What happened

South Korea’s government has proposed delaying a 22% tax on annual cryptocurrency gains above 2.5 million won ($1,860) from January 2027 to 2029, which would be its fourth postponement. The proposal is not final: officials plan to consult lawmakers and submit amendments in 2027.

Proposed

Global impact / market context

If approved, the delay would postpone when affected investors owe tax on qualifying crypto gains, potentially changing the timing of their cash outflows. The proposed three-year loss carryforward, which lets investors offset future profits with past losses, could also reduce taxable gains for some investors.

Analyst inference

The government says it wants taxation to begin when information exchange with the US under CARF starts in 2029, and to account for planned digital-asset legislation. It argues earlier taxation could disadvantage South Korea’s domestic market relative to overseas markets.

Confirmed

What to watch

1. Whether lawmakers approve the proposed postponement from January 2027 to 2029; until they do, the tax start date remains subject to change. Proposed
2. The government plans to submit tax-system amendments during parliament’s 2027 regular session and issue detailed guidelines in the first half of 2028. Confirmed
3. Whether the proposed three-year loss carryforward is included in final rules; its treatment would affect how investors calculate taxable gains after losses. Proposed

Evidence

• cointelegraph.com