South Korea’s government has backed postponing tax on cryptocurrency gains by another two years to 2029, in what would be the fourth delay to its implementation.
Finance Minister Lee Hyoung-il announced the proposal Thursday, saying the government would consult lawmakers on postponing the January 2027 implementation date.
The tax would impose a 22% levy, comprising a 20% income tax and 2% local tax, on annual crypto gains exceeding 2.5 million won ($1,860).
The government cited 2029 as the start of information exchange with the US under the Crypto-Asset Reporting Framework (CARF). It said imposing the tax before those exchanges begin could put the domestic market at a disadvantage relative to overseas markets. It also wants to account for changes under planned digital asset legislation.
Officials also said they plan to introduce a three-year loss carryforward provision, allowing investors to offset crypto losses against profits earned…
