South Korea’s crypto tax may take the scenic route to 2029

South Korean lawmakers and government officials are reportedly considering delaying the country’s cryptocurrency tax to 2029 from its scheduled January 2027 launch, according to a Monday report from Newsis. The crypto income tax could be pushed to 2029 partly because that is the earliest officials would be able to share information on taxes related to digital asset exchanges with the US.

The policy would impose a 22% tax on crypto gains, comprising 20% income tax and a 2% local tax, for investors earning more than 2.5 million Korean won ($1,883) annually. It has already faced several delays since first being proposed in 2020. “We are discussing postponing the implementation of virtual asset taxation,” an official from the Blue House presidential residence said.

The US is scheduled to begin participating in the OECD’s Crypto-Asset Reporting Framework in 2029, while South Korea is set to implement the framework starting in 2027. A South Korean official reportedly said another delay was under consideration because the US “accounts for nearly half of the virtual asset market.”

As of Monday, South Korea’s National Tax Service still listed Jan. 1, 2027 as the start date for the crypto tax.