Coin Press - South Korea Proposes Fourth Delay of Cryptocurrency Gains Tax to 2029

The government cited upcoming information exchanges with the United States and the need for a robust regulatory framework as primary reasons for the fourth postponement. The proposed delay aims to ensure fairness among taxpayers and establish a stable taxation system before domestic rules clash with international data sharing.

Under the original scheme, a 22 percent tax including local income tax would apply to annual cryptocurrency gains exceeding 2.5 million won (US$1,869). The government plans to form a public-private working group to refine taxation rules and facilitate filing processes.

The first meeting of this group will occur soon, with discussions continuing through the first half of next year. Legislative amendments are expected to be submitted to the National Assembly during its regular session in 2027.

To address market volatility, the government intends to allow investors to carry forward losses for up to three years, aligning with practices in the U.S. and Britain. This measure aims to offset future gains against past losses.

Additionally, authorities will collaborate with the Financial Services Commission to accelerate a digital asset law designed to promote market growth and protect users. The finance ministry emphasized its commitment to monitoring international information-sharing developments to ensure fair application of tax rules.

C.Smith--CPN