South Korea wants to delay its 22% crypto tax again and give investors a new break on losses

South Korea’s government said on Nov. 5 it would pursue a two-year postponement of crypto income taxation to 2029, alongside a proposed three-year loss carryforward, in consultation with the National Assembly.

The announcement follows the Democratic Party’s Nov. 4 request for another delay, less than two months before the scheduled January 2027 start.

The government’s plan still requires legislation. National Tax Service guidance continues to specify taxation of eligible crypto transfers and lending from Jan. 1, 2027.

Party leader Kim Min-seok said the party wanted the Digital Asset Basic Act to establish an overall framework before giving companies and investors an adjustment period, Yonhap reported. He also identified overseas transaction information, computer-system verification and taxpayer guidance as preparations that should accompany another postponement.

The government cited expected crypto transaction-information exchange with the United States from 2029 and changes anticipated under digital-asset legislation as reasons for seeking two more years of preparation. It also proposed allowing losses to be carried forward for three years, so they could offset later gains when calculating taxable income.

Kim’s Nov. 4 remarks reported by Yonhap specified no replacement date, although the agency said committee members had mainly discussed two years. The government’s subsequent announcement now identifies 2029 as its target.

A 2029 start already appears in a legislative proposal. An Aug. 28 release from Rep. Kim Sang-hoon describes his Income Tax Act amendment to move commencement from Jan. 1, 2027 to Jan. 1, 2029. That proposed date remains conditional on an enacted change to the timetable.