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Following complaints from industry bodies, the South Korean National Assembly is planning to postpone the implementation of the new income tax law on cryptocurrency gains.
According to a report from the Korean news website DongA on November 25, the 20% tax that was originally scheduled to be collected in October 2021 will take effect on January 1, 2022.
This delay is to give digital currency exchanges time to implement the changes required by the new tax infrastructure.
As reported by Cointelegraph, the new tax structure for cryptocurrencies was announced in July this year, imposing a 20% tax on gains above the 2.5 million won ($2260) threshold.
This rule was originally scheduled to take effect on October 1, 2021, but was complained by the Korean Blockchain Association.
KBA announced that the current tax regulations will cease to be implemented on September 30, 2021, and the new system will take effect on the second day. It is difficult for exchanges to comply in a short period of time. Therefore, the initial request is postponed to January 1, 2022. . The government seems to have acquiesced to some extent, although it only agreed to an extension of 3 months instead of the requested 15 months.
Prior to the introduction of the new regulations, digital assets were considered currency, so there was no taxation.