Wednesday, January 20, 2021

South Korean government plans to implement a 20% tax on crypto earnings in 2023.

The Takeaway:

The South Korean government is planning a 20% tax on cryptocurrency investors, making an annual income of more than 2.5 million Won.

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South Korean Ministry of Economy and Finance has recently issued an amendment to enforce a 20% tax rate on cryptocurrency investors on annual profits of more than 2.5 million Won ($2,300), starting from 2023. According to a report published in Asia Today, the country is also planning to implement a tax rate of 20% on capital gains made from stock market transactions, but the minimum limit of annual profits is much higher, around 50 million Won, as compared to just 2.5 million won in case of cryptocurrency gains.

 

South Korea intended to implement the tax policy this year. 

As reported earlier, the South Korean government delayed the implementation of the tax rule. The country originally planned to enforce the mentioned tax rule in October 2021, but the cryptocurrency exchanges operating in South Korea raised concerns about the limited time given by the government to build an effective taxation infrastructure. According to the newly introduced amendment, the tax authorities in South Korea will consider the higher amount of the market price or actual acquisition price at the end of every year, as the acquisition price calculates gains and enforces the 20% tax rule.

 

The tax authority is paying attention to the crypto industry’s demands. 

The South Korean authorities’ recent initiative to delay the implementation of tax rule till 2023 shows that the government has addressed the concerns raised by local exchanges and politicians. “We need to listen fully to the infrastructure and readiness of the crypto industry.” “I feel that the young people can react with greatness, and it is good to implement it quickly, but it is important to calmly take on the system while securing a considerable degree of sympathy,” the Democratic Party’s employment wing member said in a statement a few weeks ago. 

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Disclaimer: The article reflects the opinions of the author and is not representative of Chaintimes’ views.
The article does not offer any investment advice. User discretion is advised when investing in or trading with cryptocurrency. Extensive and diligent research should be carried out by the reader before making a decision.

Jai Pratap
Jai Pratap
A Mass Media Graduate who loves to write. Jai is also a sports enthusiast and a big movie buff. He loves to learn new things.

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