South Korea’s presidential office has backed another postponement of the country’s planned 22% cryptocurrency gains tax, with ruling-party lawmakers proposing to move the scheduled January 2027 start date to 2029. The existing deadline remains legally in place until Parliament approves a further revision.
The levy was introduced through amendments to the Income Tax Act in 2020 and was originally set for January 2022. It has already been delayed three times—to 2023, 2025 and January 2027. This fourth proposed delay follows a ruling Democratic Party bill and reflects concerns that authorities are not fully prepared to collect the tax, particularly on transactions through overseas platforms.
Under the current framework, annual crypto gains above a ₩2.5 million basic deduction would be taxed at a combined 22% rate, made up of 20% national income tax and 2% local income tax. An investor with ₩5 million in qualifying gains would owe ₩550,000; ₩10 million in gains would create a ₩1.65 million liability.
Officials cited gaps in overseas transaction reporting and fairness concerns. South Korea expects to begin exchanging information under the OECD’s Crypto-Asset Reporting Framework (CARF) in 2027, while the United States has indicated participation from 2029. Without broader data-sharing, investors using domestic platforms such as Upbit, Bithumb and Coinone could face stricter enforcement than those trading through foreign services. The presidential office has also noted worries among younger investors and the risk that uneven reporting could push trading activity offshore.
Other unresolved policy issues include the treatment of investment losses, which generally cannot be carried forward under the scheduled rules, and transition valuation for assets acquired before the tax begins. Representatives of five major exchanges met government officials on October 20 to discuss implementation concerns, with tax reporting guidelines expected in November. The National Assembly could consider amendments during November’s tax-law review, but until a bill passes, the January 1, 2027 implementation date remains unchanged.
