The Ministry of Economy and Finance of South Korea has determined the timing for the introduction of a capital gains tax on cryptocurrency transactions. The changes will take effect on 1 January 2022, The Korea Herald.
Authorities will levy a 20% tax on profits from cryptocurrency trading exceeding 2.5 million won (~$2,230). Similar rules will be implemented for inheritance or gifting of digital assets.
As of 10 February, more than 38,000 citizens signed a petition in protest against the government’s plans. If by the end of March this number rises to 200,000, the cabinet will have to respond.
South Korea’s Bitcoin exchanges were required by September 2021 to complete KYC procedures under the Special Payments Act. It also envisages a prohibition on anonymous cryptocurrencies.
Earlier in November, the National Assembly’s Planning and Finance Committee proposedto delay the introduction of the income tax on cryptocurrency transactions until January 2022. It was initially expected to take effect in October 2021.
Plans by the South Korean government to impose a capital gains tax on cryptocurrency trades became known in December 2019.
In November, ForkLog reported that the Organisation for Economic Co-operation and Development (OECD) planned to develop a single standard for the exchange of tax information for crypto assets (CRS).
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