The parliament of South Korea has moved ahead with its plan to amend the cryptocurrency tax rule. The legislative body of South Korea has decided to delay the new tax regime on crypto gains. The tax regime has now officially been postponed until the year 2022. Starting from January 2022, a tax of 20 percent will be enforced on gains made from cryptocurrency trading.
As reported by the local media outlet Yonhap News Agency on the 1st of December, this decision by the legislative body was taken in a meeting of the South Korean National Assembly which was held on the 30th of November. Initially, the tax regime was expected to be implemented by October 2021. However, the tax authority of South Korea recently planned to delay this date of implementation.
Last week, it was revealed by some rumors that their intention was to postpone this date for the next three months from the previously scheduled date of implementation. It has now said that it will implement the new tax regime by January 2022. The legislative body of the country has said that it requires more time for developing a proper tax infrastructure.
The tax amendment plan was initially proposed by the Ministry of Economy and Finance of South Korea in the month of July. As per this tax amendment plan, a tax of 20 percent will be implemented on those users who will make gains by trading with digital currencies. While elaborating the rules of imposing a tax on users, the legislative body said that only those users will have to pay the tax whose gains on cryptocurrency will surpass the figure of $2,000 or in other words 2.5 million Korean Won. Those whose cryptocurrency gains will be less than this specified amount will not be enforced with a tax. If the gains of a resident of South Korea reach 5 million Korean Won the individual will have to pay 500,000 won in tax to the government.
Over recent times, tax authorities from across the entire world have tightened their grip on cryptocurrency taxation as they are preparing new tax standards for the cryptocurrency industry. Recently, the director of the Organisation for Economic Co-operation and Development (OECD) Pascal Saint-Amans said that the organization is planning the launch of a tax reporting standard for cryptocurrencies by the end of 2021.