The latest report shows South Korea has decided to delay its crypto tax implementation. The government had initially issued a 20% crypto tax that will become effective next year January. However, the government has delayed the date until 2025.
South Korea Delays 20% Crypto Tax Till 2025
Officials of the state announced the postponement on Thursday. The report said the country’s new crypto tax reform will become effective in 2025.
Additionally, the report cited the need to protect investors and current market conditions. Also, it said the government needs time to work on specific guidelines.
Meanwhile, the government changed no other part of the previous policy. The 20% tax on gains from crypto surpassing $1,900 (2.5 million won) in one year still stands.
Besides, this is not the first time the country has been delaying its cryptocurrency tax policy. The country first announced the tax policy in 2021, with implementation slated for 2022.
However, the nation’s lawmakers pushed the date to January 2023. Unfortunately, they have postponed the crypto tax policy again.
According to Kim Young-jin, the Tax Subcommittee’s chairman, the country must formulate solid cryptocurrency regulations first. Moreover, Young-jin has not been in support of the crypto tax policy.
Meanwhile, South Korea hopes to issue regulations for the crypto industry with a new president. Besides, cryptocurrency taxation has been on the country’s agenda after the industry skyrocketed.
Crypto Tax In Other Countries
Meanwhile, Thailand had issued a 15% tax on crypto gains. Unfortunately, the proposal received heavy criticism from retail traders forcing the government to scrap it.
Furthermore, India had imposed a 30% tax on income from crypto and transactions. The regulation came into effect on the 1st of April.
Unfortunately, the increased taxation on crypto in India has affected the crypto activities in the state. According to reports, the crypto activities in India dipped after the tax implementation.
The trading volume on crypto exchange firms dropped by about 90% during that week. However, it is uncertain if this would have been the case in South Korea.
In other news, news reports in May stated that the new President of South Korea is working on crypto regulation. According to the reports, the President plans to issue the DABA (Digital Asset Basic Act) in 2023.
The regulations in the act will focus on NFTs and ICOs (initial coin offerings). It will also outline a CBDC (central bank digital currency) pilot project guidelines.