South Korea plans to release crypto tax guidelines in the first half of 2028, with implementation proposed to be delayed until 2029

Odaily reports: The South Korean government plans to delay the implementation of the cryptocurrency gains tax by another two years to 2029, and to release detailed tax guidelines in the first half of 2028. Finance Minister Lee Hyoung-il said the government will consult with lawmakers on postponing the tax arrangement originally scheduled to take effect in January 2027.

The proposed tax rate is 22%, comprising a 20% income tax and a 2% local tax, applicable to annual cryptocurrency gains exceeding 2.5 million Korean won. The government says South Korea plans to begin exchanging information with the United States under the Crypto-Asset Reporting Framework (CARF) starting in 2029, and that imposing the tax before then could put South Korea's domestic market at a disadvantage.

The government also plans to introduce a three-year loss carryforward arrangement, allowing investors to offset cryptocurrency losses against gains over the next three years, and intends to submit the relevant amendment during the National Assembly's regular session in 2027. The tax was originally scheduled to take effect in January 2022, and has since been postponed to 2023, 2025, and 2027 in succession. (Cointelegraph)