South Korea Plans to Delay Crypto Tax Until 2029 for the Fourth Time

Highlights:

• South Korea plans to delay its cryptocurrency tax until 2029, marking a fourth postponement if lawmakers approve.
• The government wants more time to improve crypto tax rules and track transactions on overseas exchanges.
• South Korea also proposes allowing investors to deduct crypto losses from future profits for three years.

South Korea plans to delay its cryptocurrency income tax for another two years, moving the proposed start date from January 2027 to 2029. The government says it needs more time to prepare tax rules and track transactions on overseas exchanges. If lawmakers approve the change, it will mark the country’s fourth delay.

According to a November 5 report by Money Today, Finance Minister Lee Hyoung-il announced the plan during a briefing in Seoul. The government will seek an amendment to the Income Tax Act rather than start collecting the tax next year. Lee said officials would consult the National Assembly on the proposal.

据韩国 Money Today 报道，韩国副总理兼财政经济部长李炯一 11 月 5 日表示，政府计划与国会协商，将原定于 2027 年实施的加密资产收益税再推迟两年至 2029 年。这将是韩国第四次推迟实施加密资产征税制度。政府表示，考虑到韩国预计从 2029…

— 吴说区块链 (@wublockchain12) November 5, 2026

South Korea Seeks Fourth Delay to Crypto Tax

South Korea introduced its crypto tax rules in 2020 and initially planned to start collecting the tax in January 2022. However, the government pushed back the deadline three times over concerns about tax reporting, market conditions, and investor protection.

Under the current rules, investors would pay a 20% tax on annual crypto profits exceeding 2.5 million won. Local taxes would bring the total rate to 22%. The tax would apply only to profits above the threshold, not an investor’s total crypto holdings.

For example, someone who makes 10 million won from Bitcoin but loses 5 million won on Ethereum would have a net profit of 5 million won. After deducting the tax-free allowance of 2.5 million won, they would pay tax on the remaining 2.5 million won.

Government Plans Three-Year Crypto Loss Deductions

Officials want to align the start of taxation with international reporting arrangements. South Korea expects to begin exchanging cryptocurrency transaction information with the United States in 2029. Until then, authorities may struggle to verify earnings on foreign platforms as reliably as trades on domestic exchanges.

Lee said the government also considered concerns that Korean exchanges and investors could face a disadvantage compared with overseas markets. Changes expected under the proposed Digital Asset Act added another reason to review the tax framework. The government also wants to let crypto investors carry losses forward for up to three years. Investors could then subtract earlier losses from later profits when calculating their taxable income.

Under the existing framework, virtual asset income falls under miscellaneous income, and taxpayers cannot use losses from a previous year to reduce the following year’s gains. The proposed change would bring South Korea closer to systems used in countries such as the United States and the United Kingdom.

National Assembly Must Approve the New Tax Deadline

Officials plan to establish a public-private working group to develop detailed tax rules, improve reporting procedures, and prepare exchanges for implementation. The government also wants to advance the Digital Asset Act to strengthen investor protection.

The announcement follows weeks of debate over another delay. An earlier Crypto2Community report covered growing pressure from lawmakers and concerns about tracking overseas transactions before the 2027 deadline. At the time, officials had not confirmed a new start date.

January 2027 remains the legal deadline until the National Assembly approves an amendment. Lee said, “We will utilize the upcoming two-year preparation period to ensure that virtual asset taxation can be implemented without any issues in 2029.”