The South Korean government has issued an amendment to introduce a tax on cryptocurrency trading profits. It will be enacted in February but won’t come into effect until 2022.
Profits from buying and selling cryptos in South Korea will be taxed at 20%. However, the rule is applicable only to crypto holders with annual income of over 2.5 million won ($2,300).
The amendment also covers new tax rules for stock transactions. Transactions of listed shares will be part of the 20% taxation rules for profits of over 50 million won annually. Stocks transactions will be taxed at 25% for annual profits of over 300 million won.
Reports of the South Korean government delaying the launch of a new tax framework for crypto profits made headlines several times in 2020. Last November, the National Assembly asked to delay the process, which was originally set to take place in October 2021.
In December, the planning and finance committee of the National Assembly announced that it will postpone the new tax rule until 2022.
Meanwhile, the Korea Blockchain Association requested on Oct. 14, 2020, that the regulators postpone the 20% crypto tax plan until 2023.
Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.