South Korea weighs another delay to cryptocurrency income tax
In short
South Korea's presidential office is leaning toward delaying cryptocurrency income tax due to start in January 2027, local outlets reported. Officials said the proposal remained under review, while lawmakers have proposed pushing implementation to 2029.
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South Korea's presidential office is leaning toward postponing cryptocurrency income tax scheduled to take effect in January 2027, local media reported on October 25. Newsis quoted an official saying discussions were moving toward a delay. Korea Economic Daily also reported that direction, but quoted an official stressing that the matter remained under review and had not been decided. [ 3 , 5 ]
The tax covers income from transferring or lending virtual assets. It would apply a combined income and local tax rate of 22% to annual earnings after a basic deduction of 2.5 million won. The measure was introduced through a 2020 income-tax law amendment and has already been postponed three times. Another delay would be the fourth. [ 3 , 4 , 5 ]
Officials and lawmakers have cited gaps in taxation arrangements and access to overseas transaction information. The reports said the United States is due to join the Crypto-Asset Reporting Framework in 2029. That framework allows tax authorities to exchange users' residence and transaction information collected from virtual-asset businesses. The concern is that a later American entry could leave taxation concentrated on users of domestic exchanges. [ 1 , 3 , 5 ]
Yonhap reported that 14 lawmakers had jointly proposed moving implementation to 2029, citing the American timetable. The People Power Party also favors postponement because it considers the tax infrastructure insufficient. Within the governing camp, supporters of a delay have argued that legal and institutional preparations remain incomplete, while opponents have warned that further postponement would undermine policy consistency. [ 4 , 6 ]
The presidential office plans party-government discussions after this month's parliamentary audit, according to Newsis and Korea Economic Daily. The latter reported that youth opinion was another consideration. The reports anticipate discussion of a legal amendment during November's tax-bill review, but do not establish that a revised implementation date has been adopted. [ 3 , 5 ]
Why it matters
The tax would charge 22% on annual income from cryptocurrency transfers and lending above a 2.5 million won deduction. Another postponement would be the fourth since the law was amended in 2020.
Key facts
- The presidential office is considering postponing the tax scheduled for January 2027. [ 3 , 4 , 5 ]
- The planned tax rate is 22%, including local income tax, after a 2.5 million won annual deduction. [ 3 , 4 , 5 ]
- Lawmakers have proposed moving the start date to 2029. [ 4 , 6 ]
- A presidential official said no final decision had been made. [ 5 ]
Confirmed by several sources
Still unclear
- Whether the tax will be postponed and what new date will be adopted. Officials described the proposal as under review; 2029 appears in a proposed bill, rather than a completed change to the law.