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South Korea Postpones 20% Crypto Tax to 2025
The government announced its 2022 tax reform plan on Thursday, which included further postponing plans to tax crypto earnings that were already delayed by a year.
The implementation of South Korea's planned taxes on crypto earnings has been delayed by two more years, according to the 2022 tax reform plan announced on Thursday by government officials.
- The announcement comes after the country's legislators in December delayed initial plans to tax virtual assets until 2023.
- According to the tax reform plan, reviewed by CoinDesk, taxation on income from virtual assets as well as income from the "transfer or lending of virtual assets" will be delayed to 2025.
- The initial plans to levy an additional 20% tax on crypto gains exceeding KRW 2.5 million ($1,900) in a one-year period, remain unchanged.
- A South Korean blockchain advocate, Harold Kim, previously told CoinDesk that the planned taxes might unfairly target smaller crypto investors, as the threshold for taxing capital gains from investment in the local stock market is considerably higher.
Read more: Why Is South Korea Throwing Money at the Metaverse?
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