South Korean political parties agreed today in the National Assembly on a new amendment to South Korea’s income tax law, which includes a one-year delay in taxation of crypto earnings.
The ruling Democratic Party and opposition conservative People’s Power Party formally announced today at the tax subcommittee meeting of the National Assembly Strategy and Finance Committee to postpone the 20% tax on cryptocurrency earnings from January 1, 2022 to January 1, 2023. decided as. The new amendment to the income tax law will be decided at the general assembly to be held on Tuesday.
South Korea’s income tax law amendment, announced earlier this year, mandates a tax on virtual asset gains above 2.5 million Korean Won (approximately $2,097) effective January 1, 2022. The announcement caused a backlash from investors and tax experts, with many discussing taxation on crypto.
While the cryptocurrency income tax deadline has been postponed, the tax subcommittee has failed to agree to raise the tax cut threshold for crypto investors from 2.5 million won to 50 million won, as many investors have requested. The subject will be discussed again later.