A South Korean opposition lawmaker proposed postponing the country’s 22% tax on crypto profits to January 1, 2030, three years later than the current start date.
That puts it in conflict with a government that has just reiterated plans to start taxing crypto in 2027. About 13 million South Koreans buy and sell crypto and would pay taxes on annual gains of more than 2.5 million won, or about $1,800.
Jeong’s amendment resets crypto taxes to 2030
The bill was proposed by opposition bloc People Power Party Representative Jeong Seong-guk. Jeong plans an amendment to the Income Tax Act to keep the tax provisions but reset the effective date from January 1, 2027, to January 1, 2030.
Lawmakers and tax authorities need the additional three years to finish their review of the virtual asset tax framework, strengthen investor protections, and build the systems required to tax crypto fairly, he says.
He contends that the statutory deadline, arriving on schedule, does not justify starting collection. First, taxpayers need a system they can live with.
The proposal comes less than a week after the Ministry of Economy and Finance finalized its 2026 tax reform package with no further delay for crypto.
Finance Minister Koo Yun-cheol, who also doubles as deputy prime minister, made clear the government’s stance on July 29 at a National Assembly Finance and Economic Planning Committee meeting. “At this point, we are proceeding with taxation starting next year as scheduled,” Koo said.
South Korea sets 22% on crypto gains
The framework, due in 2027, treats income from selling or lending crypto such as Bitcoin and Ether as “other income.”
The 22% rate combined is a 20% national income tax and a 2% local tax. It applies only when annual earnings exceed the 2.5 million won exemption.
The finance ministry provided an example of a trader who makes 5 million won from Bitcoin in a year. Remove the 2.5 million won allowance, and the remaining 2.5 million won incurs a tax bill of 550,000 won. Income earned in 2027 would be reported in May 2028.
Since crypto income is classified as miscellaneous income, losses cannot be carried forward, so a trader who loses money in a year and then makes a profit the following year still owes tax on the later gain.
Koo’s response was that stock trading gets no loss carryforward either, and he said the government would look at the issue after the tax takes effect if needed.
Another bill from the People Power Party, filed by lawmaker Song Eon-seok on March 19, would remove the crypto income tax provision from the law completely.
The party sees abolition as a parity issue, saying taxing gains on crypto while gains on regular stocks are effectively tax-free treats two investment markets differently.
Koo has noted that the United States, Japan, and the United Kingdom tax crypto as a capital gain, but South Korea has no capital gains tax system.
Seoul lawmakers approved the crypto tax provisions in 2020 with a start date of 2022, then pushed to 2023, 2025, and finally 2027.
The National Tax Service has stood up a dedicated digital asset unit. The OECD’s Crypto-Asset Reporting Framework will see South Korea start receiving data on overseas crypto activity of its residents from participating jurisdictions next year.
Japan, Germany, and France are among the 48 jurisdictions taking part.
The smartest crypto minds already read our newsletter. Want in? Join them.
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.