South Korea is likely to postpone its crypto income tax for a fourth time, with January 2029 the most probable new start date. A Blue House official confirmed a delay is under discussion, citing missing tax data from the United States.
South Korea is likely to postpone its crypto income tax for a fourth time, Newsis reported on October 26, after an official from the presidential office, also known as the Blue House, confirmed that a delay is under discussion. January 2029 is the most probable new start date, when the United States is due to join the OECD's crypto information-sharing network.
Blue House points to missing US data
According to a Blue House official on October 25: "Taxation of virtual assets is being discussed with a view to delaying implementation." The official also said almost half of the virtual asset market is in the United States, and that the biggest obstacle is that the US does not provide taxation information.
Without that data, tax officers would have to trace American exchange activity one account at a time. As a result, the tax could end up falling mostly on users of domestic exchanges.
Timeline for the decision
Lawmakers and the government are expected to amend the Income Tax Act during the tax law reform debate that begins in November. Consultations with relevant organizations start as early as October 26, and a government official said the final call will probably come between late November and early December.
The OECD's Crypto-Asset Reporting Framework (CARF) starts running next year, with 46 countries including South Korea beginning data exchanges. Canada, Switzerland, Hong Kong, and Singapore are among 29 countries that join in 2028, while Washington's first exchange is set for 2029.
A levy suspended three times
Seoul initially favored a January 2027 start, but calls for a moratorium from both the opposition and the ruling party, along with related bills, shifted the government toward suspension.
Introduced in 2020 through an Income Tax Act revision, the levy takes 22% of gains above 2.5 million won, about $1,886, once acquisition costs are deducted. The Korean parliament has already suspended it three times.
Source: CryptoPotato
Trading involves risk.
Risk Disclaimer
