South Korea lawmakers mull pushing crypto tax implementation to 2029

Discussions among South Korean lawmakers are reportedly considering postponing the implementation of a digital asset income tax until 2029.

The presidential office has indicated support for shifting the start date to 2029, though the National Assembly has not yet ratified this change.

The most probable new commencement date is January 2029, coinciding with when the United States is slated to join the OECD's crypto information-sharing network, according to Newsis reporting on October 26.

A Blue House official stated on October 25 that "Taxation of virtual assets is being discussed with a view to delaying implementation."

This potential delay stems from concerns regarding receiving data from US officials, as nearly half of the virtual asset market resides there. Without this information, tax officers would need to track American exchange activity individually.

The OECD's Crypto-Asset Reporting Framework (CARF) begins operating next year, involving data exchanges among 46 nations, including South Korea.

Initially, Seoul favored a January 2027 start, suggesting overseas financial account reporting could aid in gathering foreign tax details, but calls for a moratorium from both major parties shifted government direction toward suspension.

The proposed levy targets gains exceeding 2.5 million won, amounting to 22% including local taxes, after subtracting acquisition costs.

The National Tax Service's guide currently cites January 1, 2027, as the start date, requiring parliamentary approval to alter it.

For assets held prior to the tax start, the law mandates using the greater value between the actual acquisition cost and a prescribed market value on the day before taxation begins.

If the effective date moves to 2029, the reference date for this valuation mechanism would change accordingly, depending on the final legislative amendment.

The National Tax Service calculates acquisition cost for each resident using a total-average method for identical virtual assets, meaning a single exchange's displayed "profit" is insufficient for multi-venue trading.