South Korea Considers Fourth Delay to Cryptocurrency Tax
Lawmakers are weighing a 2029 start date as officials cite gaps in overseas transaction data and fairness concerns for domestic traders.
- South Korea's presidential office is backing a fourth postponement of the planned 22% cryptocurrency gains tax, citing implementation difficulties and fairness concerns between domestic and overseas exchanges.
- Lawmakers first introduced the cryptocurrency income tax through Income Tax Act amendments in 2020, initially scheduling implementation for January 2022 before postponing to 2023, then 2025, and finally January 2027.
- Under the current framework, a 22% combined tax applies to annual cryptocurrency gains exceeding a 2.5 million won deduction. An investor earning 5 million won would pay 550,000 won after applying the deduction.
- Democratic Party leader Kim Min-seok stated the issue "needs to be settled this year." Parliament is expected to hold consultations after the parliamentary audit concludes before lawmakers consider tax law changes.
- Officials fear uneven reporting requirements could encourage investors to move trading activity away from domestic exchanges like Upbit and Bithumb. The government aims to coordinate with overseas jurisdictions using the Crypto-Asset Reporting Framework.
29 Articles
29 Articles
Cointelegraph
The New York LedgerSouth Korea Weighs Another Delay on 22% Crypto Tax, Pushing to 2029
South Korean government officials were reportedly considering delaying implementation of a 22% crypto tax until the US would begin participating in an information exchange program.
(Seoul = Yonhap News) Reporter Lee Min-young = On the 25th, the People's Solidarity for Participatory Democracy [held a separate statement] regarding the Blue House considering a plan to once again postpone the taxation of virtual asset income scheduled to be implemented next January...
The government has decided to postpone the taxation of virtual assets for the fourth time, which was scheduled to take effect on January 1, 2027. While the government ostensibly cites the insufficient tax infrastructure to secure overseas transaction information as the reason, interpretations suggest this is a result of being conscious of worsening public opinion among the youth. When the law is set to take effect next year...
Coverage Details
Bias Distribution
- 67% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
