South Korea seeks fourth delay to 22% crypto gains tax, moving it to 2029

Key points

• Losses from 2029 could offset taxable gains through 2032, but losses made before the tax starts would not qualify.
• Cross-border data sharing with the US under the OECD-backed Crypto-Asset Reporting Framework is due to begin in 2029.

South Korea wants to delay its 22% crypto gains tax by two years to 2029, the government said on 4 Nov, pointing to the timetable for international data sharing and the need for stronger market rules. If lawmakers approve, it would be the fourth postponement since the tax was first legislated in 2020.

Finance Minister Lee Hyoung-il told a press conference in Seoul that he announced the proposed delay "with a heavy heart", noting implementation had already been put off three times. He said the two-year window would let the government bring in the crypto gains tax smoothly in 2029.

The government also proposed allowing losses to be carried forward for three years, as in the US and UK, so losses from 2029 could reduce taxable gains through 2032. Losses made before the tax begins would not count.

Domestic exchanges have complained that unclear reporting standards have held back tax software, and that they often lack purchase-price records for tokens bought abroad. A public-private working group will refine the standards, and the government will submit amendments to the National Assembly in its current regular session.

What to watch: The government will submit amendments to the National Assembly in its current regular session, and lawmakers must amend the Income Tax Act before the existing implementation date takes effect.

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