With South Korea approaching a virtual asset tax scheduled to take effect next year or so, confusion in the country’s crypto industry is growing as it remains unclear whether the tax will be delayed.
South Korea’s Ministry of Strategy and Finance said the government has submitted an amendment to the income tax law to the National Assembly to postpone the taxation of virtual asset transaction income by two years to 2025 from the original 2023. However, according to the current tax law, from 2023, people who invest in virtual assets and earn more than 2.5 million won must pay taxes at a rate of 20%.
According to the report, considering the recent surge in the number of virtual asset investors and the substantial increase in the number of exchanges, South Korea plans to further strengthen the construction of taxation infrastructure, which means that the National Assembly must formulate basic laws to protect virtual asset investors and establish investor rights before taxation. protection mechanism. Moreover, the ruling party and the opposition party have disagreements on the implementation of the gold investment tax, and the opposition party opposes the delay of the gold investment tax.
According to the current law, the gold investment tax and the virtual asset tax will take effect next year, and the virtual asset tax is likely to be linked to the gold investment tax. If Congress fails to reach a relevant agreement, the gold investment tax and virtual asset tax may be implemented together from next year.
