South Korea Moves to Push Back Its 22% Crypto Gains Tax Until 2029

Seoul’s government wants to put off taxing profits from digital assets for two more years, which would make this the fourth time the policy has been postponed. Finance Minister Lee Hyoung-il announced the plan on Thursday and said officials will now talk with lawmakers about moving the start date from January 2027 to 2029.

How the South Korea Crypto Tax Works

The levy is 22% in total, made up of a 20% income tax and a 2% local tax. It applies only to yearly gains above 2.5 million won, about $1,860. First planned for January 2022, it was later shifted to 2023, then 2025, then 2027. The new proposal reverses what a Finance Ministry official said in May, when the 2027 start was confirmed.

Why the Government Wants More Time

Officials point to 2029, when South Korea is due to begin swapping tax information with the US under the OECD’s Crypto-Asset Reporting Framework. Taxing locals before that, they argue, would leave the domestic market at a disadvantage compared with foreign platforms. They also want to wait for planned digital asset legislation.

Loss Carryforward and Next Steps

Authorities plan a three year carryforward, letting investors offset losses against profits in the following three years. Amendments will go to parliament in 2027, with detailed guidance due in the first half of 2028. Exchanges had asked for a delay, saying rules for several transaction types were unclear and they lacked time to build the needed systems.