South Korea delays tax on bitcoin traders

The government of South Korea announced a two-year postponement of the implementation of digital asset taxation, according to Digital Today.

It was envisaged that a 20% tax on profits from trading virtual assets, exceeding 2.5 million won (~$1,906), would be introduced from January 1, 2023. In December 2021, the corresponding decision was passed by the National Assembly.

Under the plan for tax reform presented by the Ministry of Economy and Finance, the introduction of the rule has been moved to January 1, 2025.

“We have considered the conditions of the virtual asset market, improvements to the investor protection system, and so on,” the ministry explained.

The rules of the FSC, obliging cryptocurrency companies to collect and share information about users who make transactions of 1 million won (~$762) or more, under the FATF rules remain in force.

Originally, authorities planned to introduce a 20% tax on bitcoin traders’ income from January 1, 2022.

Despite public support for the government’s plans, in September 2021 lawmakers from the ruling Democratic Party of Toburo spoke in favor of a one-year delay .

In October, a similar proposal was put forward by representatives of the opposition party «Сила народа»; the parliamentarians explained their position as the fiscal infrastructure not being ready for the tax’s introduction.

The government rebuffed attempts by lawmakers to approve the postponement, but in late November the National Assembly’s relevant committee проголосовал for a bipartisan amendment delaying the introduction of taxation.

In May 2022, media reported that the newly elected president Yoon Suk Yeol supported the delay .

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