South Korea's presidential office has backed another postponement of the country's planned 22% cryptocurrency gains tax. Lawmakers are considering moving the January 2027 start date to 2029. Parliament must still approve any change.
South Korea's presidential office has backed another delay to the country's planned 22% cryptocurrency gains tax. Ruling-party lawmakers have proposed moving the January 2027 start date to 2029.
An official said in an October 25 report: "The discussion has moved toward delaying implementation of the crypto tax." The government is not fully prepared to collect the tax, according to the report.
What the tax would cost investors
The current framework would impose a combined 22% tax on annual profits from selling or lending cryptocurrencies after a 2.5 million won allowance. The rate comprises 20% national income tax and 2% local income tax.
That law initially scheduled implementation for January 2022, and lawmakers subsequently postponed it to 2023, then 2025 and finally January 2027. Another postponement would be the fourth delay since the law's introduction.
Overseas reporting gaps drive the delay
Officials cited difficulty collecting trading data from overseas exchanges. South Korea expects to begin exchanging information internationally in 2027 under the OECD's Crypto-Asset Reporting Framework, but the presidential office pointed to the United States' planned participation from 2029.
The presidential office also considered concerns among younger investors. Separately, officials were scheduled to meet five major exchanges on October 20 over how to calculate income from staking, airdrops and decentralized finance transactions.
Parties back delay but differ on approach
The ruling Democratic Party has introduced legislation proposing a January 2029 start date. Opposition People Power Party lawmakers have supported postponement, although some have pursued a later deadline or repeal of the tax.
Next, the presidential office is expected to consult the government and ruling party after October's parliamentary audit ends. Lawmakers could then consider changes during November's tax law review. Until Parliament passes an amendment, the tax stays scheduled for January 1, 2027.
Source: crypto.news
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