#据报韩国考虑第四次推迟加密税
【Follow Laojiu, and wealth is yours】Will South Korea’s crypto tax be delayed again? If it’s pushed back to 2029, this could be one of the regulatory changes the crypto community cares about most!
There’s more news from South Korea’s crypto market: the tax on gains from crypto assets, originally scheduled to take effect in January 2027, may be delayed for a fourth time—possibly until 2029 at the latest.
According to South Korean media reports on October 26, the Presidential Office is discussing another delay with relevant government departments, but no final decision has been made. If the proposal goes ahead, the tax rules that South Korean crypto investors were about to face will be pushed back by another two years.
I. How was South Korea originally planning to tax crypto?
Under the current plan, South Korea will tax annual gains from transferring or lending virtual assets, among other activities. Gains above the basic deduction of 2.5 million won will be taxed at 20%, bringing the combined rate to 22% after local income tax is included.
The tax was first proposed in 2020. Its implementation date has since been postponed from 2022 to 2023, then to 2025, and later to 2027. If it is delayed again, this will be the fourth postponement.
II. Why delay it again? The key issue is tracking cross-border transaction data
South Korea isn’t simply reluctant to impose the tax; it faces practical challenges with enforcement.
Data from domestic exchanges is relatively easy to obtain, but it is much harder to get complete transaction records for users of overseas exchanges and decentralized trading platforms. South Korea plans to join the OECD’s Crypto-Asset Reporting Framework (CARF) information exchange from 2027, while the United States is expected to begin participating in the relevant information exchange only in 2029.
This means that if South Korea starts collecting taxes first, but cannot obtain overseas transaction data to the same extent, enforcement could differ between users trading on domestic exchanges and those using overseas platforms. Aligning the tax timeline with the progress of international information exchange is one of the key reasons behind the current discussions about postponing the tax.
【Follow Laojiu, and wealth is yours】Will South Korea’s crypto tax be delayed again? If it’s pushed back to 2029, this could be one of the regulatory changes the crypto community cares about most!
There’s more news from South Korea’s crypto market: the tax on gains from crypto assets, originally scheduled to take effect in January 2027, may be delayed for a fourth time—possibly until 2029 at the latest.
According to South Korean media reports on October 26, the Presidential Office is discussing another delay with relevant government departments, but no final decision has been made. If the proposal goes ahead, the tax rules that South Korean crypto investors were about to face will be pushed back by another two years.
I. How was South Korea originally planning to tax crypto?
Under the current plan, South Korea will tax annual gains from transferring or lending virtual assets, among other activities. Gains above the basic deduction of 2.5 million won will be taxed at 20%, bringing the combined rate to 22% after local income tax is included.
The tax was first proposed in 2020. Its implementation date has since been postponed from 2022 to 2023, then to 2025, and later to 2027. If it is delayed again, this will be the fourth postponement.
II. Why delay it again? The key issue is tracking cross-border transaction data
South Korea isn’t simply reluctant to impose the tax; it faces practical challenges with enforcement.
Data from domestic exchanges is relatively easy to obtain, but it is much harder to get complete transaction records for users of overseas exchanges and decentralized trading platforms. South Korea plans to join the OECD’s Crypto-Asset Reporting Framework (CARF) information exchange from 2027, while the United States is expected to begin participating in the relevant information exchange only in 2029.
This means that if South Korea starts collecting taxes first, but cannot obtain overseas transaction data to the same extent, enforcement could differ between users trading on domestic exchanges and those using overseas platforms. Aligning the tax timeline with the progress of international information exchange is one of the key reasons behind the current discussions about postponing the tax.