The ruling party plans to delay crypto taxes for an additional two years. They aim to focus first on establishing regulations for the local crypto industry before implementing taxes on investors.
According to a report from local media, South Korea’s ruling People Power Party is advocating for another two-year postponement of taxing gains from cryptocurrency investments. They might offer this proposal as part of their campaign strategy for the upcoming general election in April.
South Korea’s Ruling Party Plans Crypto Tax Delay and Regulatory Framework
The right-wing People Power Party in South Korea has announced its intention to prioritize the establishment of a basic regulatory framework for cryptocurrencies before implementing taxation. According to a report from local media outlet Herald Business Daily on Monday, the party aims to propose new regulations for the crypto industry in the upcoming term.
The current schedule for South Korea’s crypto gains tax is set to begin in January 2025, having been postponed from the original start date of January 1, 2023. However, the ruling party is considering another potential delay, pushing the tax plan to commence in 2027.
As part of its election campaign strategy, the ruling party is contemplating introducing a new bill containing essential elements for potential crypto regulations. These regulations may include requirements for crypto custody providers and token listing. These proposed regulations are expected to complement South Korea’s initial set of crypto regulations, set to take effect in July.
The party plans to finalize its core election promises by the end of the month, as per the report.
Discussion on Crypto Asset Income Tax in South Korea
Last month, a representative from South Korea’s Ministry of Economy and Finance suggested that the country’s legislative body should deliberate on the possibility of abolishing income tax on crypto assets. This proposal aligns with the current administration’s initiative to eliminate planned taxes on financial investments like stocks and funds.
However, according to a report from Herald, the People Power Party is not advocating for a complete abolition of the planned taxation.
In addition to proposing a delay in the implementation of the crypto tax, the party aims to synchronize the crypto tax threshold with that of stocks. Currently, the tax plan imposes a 22% tax on crypto gains exceeding 2.5 million Korean won ($1,875), while gains from stocks are only taxed when they exceed 50 million won.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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