South Korea weighs fourth delay on its crypto gains tax, pushing it to 2029 — SkimNews
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- South Korea's presidential office is leaning toward delaying the crypto gains tax until 2029, a fourth postponement, because domestic exchange users could bear the burden while authorities struggle to trace activity on U.S. platforms.
- U.S. crypto trading accounts for almost half of the market, according to an official who called the lack of U.S. tax data the biggest obstacle.
- Under the Crypto-Asset Reporting Framework, South Korea, Japan and the U.K. begin data exchanges in 2027; Singapore, Switzerland and Hong Kong follow in 2028, and the U.S. in 2029.
- National Tax Service still lists Jan. 1, 2027 as the start date; current rules impose a 20% tax on annual net income from crypto transfers or lending, or 22% with local income tax, after a 2.5 million won ($1,887) deduction.
- Lee Hyung-il told lawmakers at an Oct. 6 parliamentary audit that he would gather views from parliament, experts and industry after replacing Koo Yun-cheol, who said in July that the tax would begin in January 2027.
- Park Min-kyu proposed moving the start to Jan. 1, 2029, but the fourth delay requires Parliament to amend the law, with a final decision expected by early December.
- South Korea previously argued that foreign financial account reporting could let it track offshore holdings, even as the U.S., U.K. and Japan already tax crypto without waiting for cross-border data exchanges.
Why it matters: A fourth postponement is aimed at sparing domestic exchange users from immediately bearing the 20% levy because authorities cannot fully trace activity on U.S. platforms. Moving the start to Jan. 1, 2029 requires a parliamentary amendment; until that change, the National Tax Service still lists Jan. 1, 2027.
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