Opposition in South Korea has advocated delaying taxation of cryptocurrencies

October 27, 2021

Opposition in South Korea has advocated delaying taxation of cryptocurrencies

Representatives of the opposition People's Power party in South Korea have developed a proposal to postpone the introduction of a capital gains tax on cryptocurrency transactions. This was reported by The Korea Herald.

The document is expected to be tabled at the National Assembly on Tuesday, October 12.

Earlier, the Ministry of Economy and Finance determined that the new requirements will take effect from January 1, 2022. The tax will be 20 per cent on profits earned in excess of 2.5 million Korean won (~$2090).

Lorem Ipsum Dolor

In September, an attempt to postpone the taxation of digital assets by a year was made by parliamentarians from the ruling Democratic Party. They attributed the initiative to an unprepared infrastructure.

The government succeeded in rejecting the lawmakers' proposal, keeping the previous deadline in place.

The bill from the People's Power parliamentarians not only envisages the introduction of the tax from January 1, 2023, but also changes to the rates.

The lawmakers proposed a 20 per cent tax on profits between 50 million and 300 million won ($42,000-$251,000) and a 25 per cent tax on those exceeding 300 million won.

This is in line with the taxation norms for financial investment profits, which the authorities plan to introduce from 2023.

"It is wrong to impose taxes at a time when the legal definition of virtual currency is ambiguous. The aim is also to simplify the base to the level of financial investment profits tax so that investors in virtual currency are not disadvantaged," the party spokesman explained.

Recall that Korean authorities have recorded an increase in illegal currency transactions using digital assets. In seven months, such transactions amounted to 812.2 billion won - 40 times more than in the entire year 2020.

In July, the Customs Service said it had identified 33 people who had made illegal cross-border payments related to cryptocurrencies in two months alone.

Cryptocurrencies: What Should You Look Out For When Altcoin.io Cheap & Safe? Where can you buy Altcoin.io?

About the author

Hi there, my name is Zalman Weinberg. I'm enthusiast with over 7 years of experience in cryptocurrencies and blockchain. Professional Trader providing Blockchain solutions to Startups and Enterprises. Expert in all cryptocurrency exchange APIs (BitMEX, Bittrex, Binance, Bitfinex, Kraken, Poloniex, Gdax etc.). I have also worked with multiple Forex broker APIs.

Leave a Reply

Your email address will not be published. Required fields are marked

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}
This site is registered on wpml.org as a development site.