South Korea Delays Crypto Tax Implementation to 2027

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South Korean lawmakers have reached an agreement to postpone the implementation of a crypto tax until January 2027. The decision marks a change from their previous resistance to delays and will affect taxes on cryptocurrency trading.

According to Democratic Party floor leader Park Chan-dae, “We have decided to agree to a two-year moratorium on the implementation of cryptocurrency taxation proposed by the government and ruling party.”

While the government had proposed delaying the tax for two years and the ruling People Power Party suggested a three-year delay, the Democratic Party had previously opposed both and instead suggested increasing tax deductions as an alternative.

Initially, the Democratic Party had proposed raising the tax-deductible threshold for cryptocurrency profits to 50 million won, a significant increase from the current threshold of 2.5 million won.

This was an effort to address concerns without delaying the implementation of the tax law. Park also mentioned that despite the delay in the crypto tax, the party would still vote against the government’s inheritance and gift tax bills which they believe favor the wealthy.

These bills include a reduction in the top tax rate from 50% to 40% and an increase in the deduction threshold for children inheriting from their parents.