Tax stay – South Korean authorities once again postpone the entry into force of cryptocurrency taxation in the country, citing market conditions, and the need for serious industry regulation ahead of time.
The painful: not before 2025 in South Korea!
Decisions on cryptocurrency taxation in South Korea appear to be as volatile as the price of Bitcoin (BTC). New tax reform plans announced on July 21 by government officials upset the agenda for the umpteenth time. The changes, however, should be welcomed enthusiastically by the community.
As initially expected, earnings on cryptocurrency investments of over 2.5 million won – about $ 1,900 – within a year, it will be taxed at 20%.
However, the authorities postponed the introduction of this tax for two years. The date of its entry into force therefore passes from 1uh From January to 2023 to 2025.
Crypto tax: a volatile calendar like the sector
To the delight of investors’ portfolios and to the detriment of the state coffers, the government has trouble meeting a start date the taxation of earnings in cryptocurrencies.
First announced in January 2021, this tax provision was due to apply from January of this year, before lawmakers postponed its introduction until 2023.
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Adjust before taxing, not the other way around
The bears apparently managed to buy more time for South Korean investors. Current market conditions are said to be one of the factors that motivated the authorities’ decision to delay the introduction of this cryptocurrency earnings tax by two years.
With this postponement, the government would also give itself time regulate cryptocurrencies before taxing themposition that aligns with that of the chairman of the tax subcommittee, Kim Young-jin, who opposed this taxation, primarily in favor of strong regulation of the sector.
South Korea continues to show a double face towards the sector. That’s right, the authorities are putting pressure on cryptocurrencies like Litecoin. Faced with this, even at the cost of finding a deficit in the state coffers, they do not hesitate to postpone the application of a tax measure that would risk damaging investors even more, who in the best of cases would be sanctioned by the crypto winter in. 2023.
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