South Korea’s presidential office is supporting another delay to the country’s planned 22% tax on cryptocurrency profits. The tax is currently scheduled to begin in January 2027, but lawmakers are considering pushing the start date back to 2029.
Officials say the government still needs more time to prepare tax collection systems, obtain transaction records from overseas crypto exchanges, and address concerns raised by younger investors.
South Korea first introduced the cryptocurrency tax through changes to its Income Tax Act in 2020, with implementation originally planned for January 2022. Since then, the start date has been postponed several times, first to 2023, then 2025, and finally January 2027. If approved, the latest proposal would be the fourth delay.
Under the current plan, cryptocurrency investors would pay a combined 22% tax on qualifying annual profits above a 2.5 million won allowance. This includes 20% national income tax and 2% local income tax.
For example, an investor earning 5 million won in qualifying annual crypto profits would pay 550,000 won in tax after deducting the allowance.
One major concern is the government’s ability to track transactions made through overseas cryptocurrency exchanges. South Korea expects to begin exchanging crypto-related financial information with other countries in 2027 under the OECD’s Crypto-Asset Reporting Framework (CARF). However, officials have pointed to the United States’ planned participation in 2029 as another reason to consider delaying the tax.
Authorities are concerned that investors using domestic exchanges could face stricter tax enforcement than those trading through foreign platforms if international reporting systems are not fully prepared.
Younger investors’ concerns have also become part of the discussion. Officials say cryptocurrency has become one way some young people try to build their wealth. However, a recent survey showing a decline in presidential approval among people in their 20s and 30s did not establish that crypto taxation was responsible.
The proposed delay would affect investors using major domestic exchanges such as Upbit and Bithumb. Officials have also been discussing how to calculate taxable income from staking, airdrops, and decentralized finance transactions.
The ruling Democratic Party has proposed moving the tax’s start date to January 2029. The opposition People Power Party also supports postponement, although some of its lawmakers favor a later start date or scrapping the tax altogether.
The government and ruling party are expected to hold further discussions after the parliamentary audit concludes. Lawmakers could consider amendments during November’s tax review.
For now, the tax remains scheduled to begin on January 1, 2027. The date will change only if Parliament approves a legal amendment.