South Korea delays the 20% crypto trading tax for 2022 according to the announcements made by the lawmakers of the country. The new income tax on crypto-trading will be delayed for 2022 as we are reading more in the latest crypto news today.
The Strategy and Finance committee of the South Korean National Assembly approved new amendments for the tax as well. Now, with the new amendments, South Korea delays 20% crypto trading tax until January 2022 according to the local news outlet Yonhap News Agency. The tax was initially scheduled to come into effect on October 1st in 2021 but the committee argued last week that the local crypto exchanges have more time to build a new infrastructure that is fully compliant with the new rules. The committee suggested postponing the changes for 2022.
Korean exchanges are under scrutiny with the new legislations.
During a general meeting on November 30, the lawmakers approved the delay, and starting from January 2022, the income from crypto trading will incur a 20% tax but only of a trader’s profit will surpass 2.5 million Korean Won or about $2000 in one year. All crypto trading-based income over the threshold will be taxed per year. South Korean crypto exchanges will be obliged to complete know-your-customer procedures for the clients by September 2021 as part of the implementation of the law “On Special Payments” and the amendments will include a ban on anonymous crypto-assets.
South Korea’s Ministry of Strategy and Finance also proposed a new tax on profits made via crypto-to-fiat transactions in May and it included tokens that were sold by crypto mining organizations and via initial coin offerings. Crypto taxation became an increasingly interesting topic as digital assets got more traction in the general public. An expert witness testified recently in front of the US Congressional panel and called crypto-related taxes a nightmare because of their complex nature.
As recently reported, A few months ago, a new report stated that South Korea’s Minister of Finance and Economy believes that the country will have to come up with a new tax on crypto trading and investing and that the country was already in discussions with other countries about introducing a new law. In July this year, the country’s Ministry of Economy and Finance amended its tax code where it included a new plan for charging residents a 20% tax on gains from crypto trading which are worth about $2,000.
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