South Korea Moves to Delay 22% Crypto Tax Until 2029

South Korea is considering delaying its planned cryptocurrency tax until 2029, marking the fourth time the government has pushed back the introduction of taxes on digital asset profits.

Finance Minister Lee Hyoung-il announced the proposal on Thursday, confirming that the government plans to discuss the delay with lawmakers. The current schedule calls for the tax to take effect in January 2027.

Under the proposed system, crypto investors would pay a 22% tax on annual gains above 2.5 million won, or approximately $1,860. The rate includes a 20% income tax and an additional 2% local tax.

The government said the latest postponement would give South Korea more time to prepare for international crypto tax reporting requirements. The country expects to begin exchanging information with the United States in 2029 under the Crypto-Asset Reporting Framework (CARF).

Officials warned that introducing the tax before international information-sharing systems become active could place South Korean crypto investors and businesses at a disadvantage compared with overseas markets. The government also wants to align the tax framework with upcoming digital asset legislation.

Another proposed change would allow investors to carry forward cryptocurrency losses for three years. This would let taxpayers use losses from previous years to reduce taxable profits in future periods.

The government plans to submit amendments to improve the tax framework during the National Assembly’s regular session in 2027. More detailed tax guidelines are expected in the first half of 2028.

South Korea originally planned to introduce its crypto tax in January 2022. However, the deadline was moved to 2023, then 2025 and later 2027 as policymakers continued to review the rules.

The latest proposal also marks a shift from the government’s earlier position. In May, the Finance Ministry confirmed that it intended to proceed with the January 2027 launch.

Pressure for another delay has increased following discussions between government officials and major cryptocurrency exchanges. Industry representatives have raised concerns about unclear tax treatment for different types of crypto transactions and the limited time available to build the systems needed to comply.

If approved, the new proposal would give South Korea’s crypto industry another two years to prepare before the planned tax on digital asset gains takes effect.