South Korean Lawmakers Tentatively Back Crypto Tax Delay to 2029

South Korea's ruling and main opposition parties tentatively agreed on Wednesday to push the country's crypto income tax back two years, to 2029, Yonhap reported. The tax is set to start in January 2027 under current law.

Black Mint reported Nov. 6 that the government would seek the delay. This is the first sign the National Assembly will go along.

No vote yet

Rep. Oh Gi-hyoung of the ruling Democratic Party, who chairs the tax subcommittee, told reporters the parties found no real differences on the government's two-year plan, per Yonhap's Korean report. The subcommittee did not pass the bill. Oh said the final vote will come on its last day of review.

Rep. Bae June-young of the opposition People Power Party said the government has to prepare responsibly if it delays again, and that lawmakers would check its progress, Yonhap reported.

The tax was first set for 2022. It was pushed to 2023, then 2025, then 2027, so this would be its fourth delay.

What the bill changes

The bill, filed by Democratic Party Rep. Ahn Do-geol from the finance ministry's plan, adds a three-year loss carryforward, Edaily reported. The idea: a losing year could reduce tax owed on gains in the next three years. Today only same-year losses count.

It would also make domestic exchanges send customers' trading records to the National Tax Service from 2027. Crypto moves between exchanges and overseas platforms, so the tax office says it needs the records to work out what each person paid and gained. The agency told Edaily it would use the data only to build a pre-filled filing system before the tax starts, not to tax anyone.

Two points still open

Lawmakers still disagree on that 2027 start date for exchange records, and the government opposes raising the tax-free allowance, Yonhap reported. Under current law, individuals would pay 22%, including local tax, on yearly crypto gains above 2.5 million won, The Korea Herald reported last week.

In our opinion: a tax first written for 2022 is heading for its fourth delay, and Korea's crypto traders get two more years without it. The detail worth chasing is the records rule, because exchanges could be filing customers' trades with the tax office in 2027, two years before anyone owes a won. The subcommittee's last session settles both questions.