The government of South Korea is planning on moving ahead with its plan to impose cryptocurrency tax in the country. The plan was delayed several times, but now it is going to enact the tax law in the country for the holders of digital currencies.
As reported by local news media outlet Asia Today on the 7th of January, the South Korean government will introduce a tax of 20 percent on those profits, which will be made through trading cryptocurrencies. Only those users will have to pay a tax of 20 percent whose profits made through digital currency trading will exceed more than 2.5 million Won or $2.3k annually.
An enforcement decree amendment was released by the Ministry of Economy and Finance. Reportedly, the legislative notice for this amendment is going to last till the 21st of January, starting from the 7th of January. As soon as this period is over, the amendment will be enacted in the month of February.
The South Korean government will begin taxing cryptocurrency users from the year 2023. As per the report, taxation will only be applied to the cryptocurrency gains. However, the government also plans to add stocks as well into its schedule of taxation. In the case of stocks, holders will have to pay a tax if their capital gains surpass the threshold of $46k or 50 million Won. This threshold is much bigger than the one set for cryptocurrencies.
The government revealed its intentions for imposing a tax law on cryptocurrencies back in the year 2020, and a tax regime was also proposed by the government at that time. This tax regime was delayed many times throughout the year. It initially planned to introduce the 20 percent crypto tax in the year 2020, but later on, it changed its mind. Now, it is scheduled for the year 2023. This time, the South Korean government seems to be affirmed over its decision. But there is likely a chance that this tax regime may further get delayed.