South Korea postpones crypto tax plan until 2023

South Korea has postponed its cryptocurrency taxation plan until 2023 as lawmakers seek support from young voters looking to postpone the taxation of virtual assets as we can see on the news today.

South Korea has postponed its crypto asset taxation plan at Thursday’s plenary session until 2023.

The proposed tax will raise 20% on crypto profits over a one-year period to $ 2,122, beginning Jan. 1.^NS, 2022. Legislators from both opposition and ruling parties are trying to attract voters in their twenties and thirties to become crypto investors, and they have proposed a tax rate for the first presidential election in March. Harold Kim of the Korea Blockchain Association said that there will be more opposition from industry and investors to the tax plans, but also the fact that lawmakers and tax authorities are challenging taxes or postponing plans.

Many KBA investors and directors have also compared the expected tax rate on cryptocurrencies to the proposed tax rate on stocks, only to conclude that they are being treated unfairly. Stock investors pay taxes on gains above $ 42,450, while crypto investors pay tax when they reach capital gains of $ 2,122. Investors will lose stocks even 5 years from now, but will not be able to carry over crypto losses at all. According to the KBA director, the virtual property tax comes into effect before the shares increase the tax.

We also previously reported that the ruling Korean Democratic Party is eager to delay tax policy on digital assets and, according to officials, taxation on bitcoin and altcoin investors is still non-existent. There is no adequate infrastructure. The Democratic Party of Korea has many objections to an upcoming law that plans to tax income from crypto investments. They reportedly even passed a new bill that could suspend the law, which will come into force in 2022.

South Korea is delaying a crypto tax bill while the country’s authorities have their own doubts about an upcoming crypto wealth tax. Nearly 54% of them reportedly approve of South Korea’s plan to impose a 20% tax on profits from digital asset trading, and 38% oppose it.