South Korea Plans to Allow Crypto Asset Loss Carryforwards Until 2032

The South Korean government plans to postpone the implementation of cryptocurrency asset taxation to 2029 and has proposed allowing investors to carry forward trading losses. The current plan imposes a 22% tax on individuals with annual net gains exceeding 2.5 million Korean won, and the relevant proposal still requires the South Korean National Assembly to amend the Income Tax Act.

The proposed loss carryforward would apply only to losses incurred from 2029 onward and could be used to offset taxable gains until 2032; losses incurred before the tax is formally implemented would not qualify for carryforward. A government-private working group will continue through the first half of next year to refine taxation standards for complex activities and simplify the filing process. (Bitcoin.com News)