South Korea's Opposition Proposes Delaying Crypto Tax by Three Years

South Korea's opposition People Power Party has proposed delaying the country's 22% cryptocurrency investment tax by three years to January 1, 2030. The proposal comes after the government confirmed it will proceed with the existing 2027 deadline.

The tax would apply to annual crypto gains above 2.5 million won, with a combined rate of 22%, consisting of a 20% national income tax and 2% local income tax. This means investors earning taxable cryptocurrency income during 2027 would report it for the first time in May 2028.

People Power Party lawmaker Jeong Seong-guk argued that the additional three years would give lawmakers and authorities time to review the virtual asset tax system and related rules before investors become liable for the tax. He stated, 'Cryptocurrency taxation should begin only after rules protecting investors and the infrastructure needed for fair taxation have been sufficiently established.'

The government has said 48 jurisdictions are participating in the reporting arrangement, which is expected to provide tax authorities with additional information on assets and transactions held through foreign platforms.