South Korea postpones plans to tax cryptocurrency until 2023.

During Thursday’s plenary session, South Korean legislators postponed proposals to tax virtual assets until 2023.

Starting January 1, 2022, the proposed levy would have assessed a 20% tax on crypto earnings exceeding KRW 2.5 million (US$2,122) in a one-year period.

South Korea lawmakers from both the government and opposition parties are attempting to appeal to voters in their twenties and thirties, who are more likely to be cryptocurrency investors and hence opposed to the planned tax, ahead of the March presidential election, according to local experts.

It is usual to witness south korea’s business and investor opposition to tax ideas, according to Harold Kim, director of the Korea Blockchain Association (KBA). However, it is “not usual” to see politicians and financial officials disagree over planned taxes, resulting in the proposal being postponed.

Many crypto investors, including the KBA director, have likened the proposed cryptocurrency tax to the proposed stock tax, concluding that they are being treated unfairly.

Stock investors would only have to pay taxes on earnings exceeding KRW 50 million (US$42,450), but cryptocurrency investors would have to start paying when their capital gains reached $2,122, according to Kim. Furthermore, investors may roll over stock losses for five years but not crypto losses at all. Furthermore, the KBA director stated that the virtual assets tax will be implemented a year before the stock gains tax.

Patrick

Coincu News