Politics · South Korea · 16 hrs ago
South Korea delays cryptocurrency tax until 2029
South Korea has delayed taxes on cryptocurrency gains until 2029, instead of introducing them next year.
The tax was legislated in 2020, and this is the fourth proposed postponement.
The government says the delay is needed for tax fairness because it is difficult to obtain records of trades made overseas.
The commentary argues that countries including the United States and Britain tax crypto even when they lack foreign trading records, requiring taxpayers to report those trades themselves.
It also notes that a 2028 election comes before the new tax start date, raising the possibility that the delay is politically motivated; this is speculation, not an established reason.
Repeated delays could weaken trust in government promises, while the tax is now planned for 2029.
South Korea has postponed planned cryptocurrency taxation until 2029.
The tax had been scheduled to begin next year, and the government has pursued a fourth postponement since the tax was legislated in 2020.
The government said the delay would address tax fairness because it is difficult to obtain overseas transaction records.
A Maeil Business columnist questioned that explanation, noting that the United States and United Kingdom tax cryptocurrency without holding overseas transaction data.
The columnist also suggested the delay could reflect a desire to put off an unpopular policy until after the 2028 general election.
- Who
- South Korea’s government is postponing cryptocurrency taxation.
- What
- The planned tax will start in 2029 instead of next year.
- When
- The tax is due to begin in 2029.
- Where
- South Korea.
- Why
- The government cited tax fairness and difficulties obtaining overseas transaction records. A columnist questioned the rationale.
South Korean government
Maeil Business columnist
Reason for delay
South Korean government
The government said limited access to overseas transaction records could disadvantage users of domestic exchanges.
Maeil Business columnist
The columnist said countries including the United States and United Kingdom tax cryptocurrency despite lacking overseas transaction data.
Timing
South Korean government
The government pointed to 2029, when it expects to exchange information with the United States through an automatic system.
Maeil Business columnist
The columnist noted that the delay puts taxation after the 2028 general election and suggested electoral considerations may be involved.
South Korea legislated cryptocurrency taxation.
The government cited the planned start of automatic cryptocurrency information exchange with the United States; a general election is also scheduled.
South Korea’s cryptocurrency tax is due to take effect.
- Tax start
- 2029
- Previous planned start
- Next year
- Legislation
- 2020
- Postponements
- Fourth postponement effort since legislation
- Election
- 2028 general election
What people are saying
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