The South Korean government has announced a big decision for the virtual asset industry. Authorities, bitcoin and cryptocurrency announced that taxation would be delayed for two years.
New Cryptocurrency Taxation Postponed for Another 2 Years
According to the 2022 tax reform plan announced by government officials on Thursday, the implementation of planned taxes on South Korea’s crypto earnings has been delayed for another two years.
The announcement comes after the country’s lawmakers in December delayed initial plans to tax virtual assets until 2023.
According to the tax reform plan under review, taxation of income from virtual assets as well as income from “transfer or lending of virtual assets” will be postponed to 2025.
20 percent tax will be applied to incomes exceeding 1,900 dollars in the taxation system
Initial plans for a 20% surcharge on crypto earnings exceeding Won 2.5 million ($1,900) over a one-year period remain unchanged.
Harold Kim, a South Korean blockchain advocate, previously said that the planned taxes could unfairly target smaller crypto investors, as the threshold for taxing capital gains from investments in the local stock market is quite high.
According to the announcement, the new taxation policy will be implemented from January 1, 2025.
The report said the government is seeking an investor protection system. Investors suffered a great loss due to the LUNA event in May 2022. Since then, officials have pointed out that some local virtual asset exchanges have not taken specific measures to minimize investors’ losses.
*Not investment advice.