Key Takeaways
- According to fiscal chief Ko Kwang-Hyo of the Ministry of Economy and Finance, South Korea’s planned tax on digital assets has been postponed for another two years.
- A 20% tax on cryptocurrency profits was supposed to go into effect on January 1, 2023, but Ko’s declaration pushes that date back to 2025.
- President Yoon Suk-yeol has earlier noted that the cryptocurrency tax should be postponed until adequate market infrastructure is in place.
South Korea’s planned tax on digital assets has been postponed for another two years, according to fiscal chief Ko Kwang-Hyo of the Ministry of Economy and Finance, and the tax on crypto assets will begin in 2023.
South Korea recently announced plans to levy a 20% tax on cryptocurrency gains beginning in 2023. All crypto transactions with capital gains of more than 50 million Korean won (US$38,624.95) were supposed to be subject to the tax.
Due to investor backlash, the plan was postponed until 2023.The implementation of a 20% tax on capital gains exceeding 50 million Korean won (US$38,624.95) from stock trading, which was scheduled to begin in 2023, has been postponed until 2025.
The virtual asset income tax regime was announced in December 2020, with implementation set for 2022. However, due to the need to develop a tax structure, the execution was postponed for a year. The revenue raised by transferring or lending virtual assets is treated as other income under the asset income taxation system, and after deducting 2.5 million won from the virtual asset income, it is taxed separately at a 20% rate.
Ko’s declaration was included in South Korean President Yoon Suk-economic yeol’s strategy roadmap, despite his previous arguments that the crypto tax should not be implemented until appropriate market infrastructure is in place.
The upcoming “Digital Assets Basic Act” will regulate cryptocurrency issuance and listing, according to the roadmap.
Netizens are clearly waiting for the top of the next bull market, @KivLleh feels this year there will be no taxable wins. The next bull run will occur after the halving and subsequent rate cuts in 2025. BTC will be worth more than $100,000, and a lot of taxes will be generated until then.
And like always memes on the internet are going out of control!
