Opposition bill delays South Korea's 22% crypto tax to 2030

Jeong argued that the additional three years were needed to finish reviewing the virtual asset tax system and strengthen investor protections.

The opposition party has also filed a separate bill, by lawmaker Song Eon-seok, that would remove the crypto income tax provision from the law entirely. The party sees the current plan as a parity issue, since stock gains are effectively tax-free in South Korea.

Koo noted that the United States and Japan tax crypto as a capital gain. South Korea has no capital gains tax system.

Crypto income is classified as miscellaneous, so losses cannot be carried forward. Koo said the government would look at the issue after the tax takes effect. He compared it to stock trading, which also gets no loss carryforward.

The tax has been delayed several times. Lawmakers approved the provisions in 2020 for a 2022 start, then postponed it to 2023, then to 2025, and the current start is 2027. The National Tax Service has set up a dedicated digital asset unit. South Korea will start receiving data on overseas crypto activity of its residents from participating jurisdictions next year under the OECD's Crypto-Asset Reporting Framework. Japan and Germany are among the 48 jurisdictions taking part; France also participates.

Jeong's bill would reset the start date to January 1, 2030. The government's current plan calls for taxation to begin January 1, 2027, with income reported in May 2028.