South Korean news agency Yonhap have today reported a slight alteration in their country’s cryptocurrency tax legislation.
The new proposal, which was agreed in a meeting of the National Assembly Planning and Finance Committee, extends the launch date of personal income and consumption tax from cryptocurrency gain by three months from October 2021 to January 2022.
The announcement states that once implemented, cryptocurrency investors will experience a “20% tax on the income of virtual assets exceeding 2.5 million ($2,250) won from 2022.”
When the South Korean government announced their intention this year to implement this new crypto-tax in October 2021, they received strong opposition from local businesses and industry bodies.
The Korea Blockchain Association requested an extension to January 2023 to allow a grace-period for businesses in the space to build the operational infrastructure required for this new asset class. It would also unburden crypto exchanges who were required to submit trading logs at the end of September 2021, only to begin an entirely new tax initiative the following day.
Chairman of the Association, Oh Gap-soo said:
“It is necessary to provide a reasonable minimum period of preparation so that it can contribute to the national economy and to secure tax revenue in the long term.”