Cryptocurrency Tax Postponed! South Korea Extends Breathing Room To 2027

Cryptocurrency firms in South Korea would have some breathing room before they start paying capital gains tax as the government decided to delay its implementation by two years.

South Korean legislators agreed not to impose the crypto taxation policy next year, moving its implementation to 2027.

Delaying Cryptocurrency Tax Policy

For the second time, South Korean authorities announced that the capital gains tax on cryptocurrencies which was set to be introduced in January 2025 will not be pushed through.

The current political situation in the Asian country made it difficult to implement it next year and must be deferred until 2027.

The Democratic Party of Korea floor leader Park Chan-dae said on Sunday that they have reached an agreement to postpone the taxes on profits from cryptocurrency trades.

“We have decided to agree to a two-year moratorium on the implementation of the cryptocurrency taxation proposed by the government and ruling party,” Park said about the cryptocurrency taxation set to come into effect in January 2025.

The two-year suspension was agreed upon despite reports saying that KDP and the ruling People’s Power Party have struck a political deal that is more inclined to a looser approach to taxing crypto gains.

Earlier, the People’s Power Party proposed to delay the new crypto taxation until January 2028.

Increase Tax-Deductibles

Previously, the Democratic Party opposed the tax moratorium and offered an alternative of increasing the tax deductibles.

Under its initial proposal, the legislators suggested to hike the tax-deductible from the threshold of 2.5 million won to 50 million won, with the goal of implementing the law without any delay.

However, on Sunday, the party concurred with other South Korean lawmakers to move the implementation date.

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