Taxes are one of the issues that crypto money investors follow closely. With increasing investor interest, many countries are looking for ways to tax earnings in the cryptocurrency sector.
While some countries prefer the declaration method in taxation, some countries want to tax transactions directly. In Turkey, a new law on taxation of cryptocurrencies is expected to be prepared.
South Korea is moving faster than other countries on cryptocurrency regulations. After the legal regulations in the country, after January 1, 2022, it was expected to be taxed 20% on earnings over 2.5 million Won. Investors would be taxed from this date, though taxes would be levied after January 2023.
However, the plans for 2021 could not be realized. The spokesperson of the ruling party said in a statement today that the taxation of virtual assets will be delayed.
The ruling party also proposed some amendments to this law. It was stated that the new bill will come to the agenda at a date after October. The law, which is expected to come into effect on January 1, is expected to be suspended.
In the statements of the spokesperson of the government, it was stated that taxation of crypto money markets is not easy, and there are very complicated areas such as decentralized systems, transactions made in overseas exchanges and peer-to-peer transfers.
South Korea’s efforts to create a framework that will cover all the functions of cryptocurrencies without being too easy on taxation and displaying a prohibitive attitude were welcomed.