South Korea is seeking to delay its 22% cryptocurrency gains tax from January 2027 to January 2029, pending approval from the National Assembly. The government also plans to introduce a three
South Korea plans to push back its cryptocurrency tax by another two years, moving the proposed implementation date from January 2027 to January 2029. The government announced the plan on November 5, citing gaps in overseas transaction reporting and the need for more time to prepare its digital asset regulatory framework.
Finance and Economy Minister Lee Hyeong-il said the government would work with the National Assembly to amend the existing tax law. If lawmakers approve the change, it will mark the fourth postponement since South Korea first introduced the tax plan in 2020.
Under the existing framework, individuals would pay a 20% national income tax plus a 2% local income tax on annual cryptocurrency gains exceeding 2.5 million won (approximately $1,869). The rules cover income from transferring or lending virtual assets.
— TheNewsCrypto (@The_NewsCrypto) November 5, 2026
JUST IN:
South Korea delays its planned cryptocurrency tax until 2029, pushing implementation back by two years from the previously scheduled January 2027 start. The Finance Ministry confirmed the delay, marking the fourth postponement of the crypto tax. #SouthKorea #Crypto #Tax
The government said beginning taxation before international crypto transaction data becomes available could put South Korean investors and domestic exchanges at a disadvantage compared with overseas markets.
South Korea is scheduled to begin exchanging crypto-asset tax information with the United States in 2029 under the OECD-backed Crypto-Asset Reporting Framework (CARF). The government wants to use that system to improve its ability to identify overseas transactions and calculate taxable income.
Alongside the proposed delay, the government plans to introduce a three-year loss carryforward provision for cryptocurrency investors.
Under the current rules, investors can offset gains and losses within the same tax year but cannot carry unused losses into future years. The proposed change would allow eligible losses to be deducted from gains in subsequent years, for up to three years.
The government also plans to establish a public-private working group involving industry representatives, experts and officials to review tax rules, reporting requirements and filing procedures.
The group is expected to work through the first half of 2027. The government plans to submit the necessary legislative amendments during the National Assembly’s regular session that year and publish detailed tax guidelines in the first half of 2028.
The proposed January 2029 start is not yet legally final. South Korea’s National Assembly must approve the required amendments before the new timetable takes effect.
