South Korea’s government announced on Nov. 4 that it would seek to delay its planned cryptocurrency gains tax by two years to 2029. Lawmakers must amend the Income Tax Act for the delay to take effect; if approved, it would be the tax’s fourth postponement. Under current legislation, annual net income above 2.5 million won (US$1,869) from transferring or lending digital assets would face a 22% tax.
The government also proposed allowing trading losses incurred from 2029 to offset taxable gains through 2032. Losses from before the tax starts would remain ineligible. Officials cited planned cross-border data sharing beginning in 2029 and the need for stronger market rules, while local exchanges have warned that missing purchase-price records for assets acquired abroad make taxable profits hard to calculate.
