According to Yonhap on Dec. 01, the planning and finance committee of South Korea’s national assembly passed amendments to the country’s tax laws wherein a new cryptocurrency tax regime will come into effect in January 2022.
According to cointelegraph, on Nov. 25, the legislature proposed delaying the adoption of a cryptocurrency income tax rule to Jan. 01, 2022 instead of October 2021.
The decision will provide local crypto businesses with more time to adapt to new tax laws. The lately passed amendments stipulate that investors in South Korea pay a 20% tax rate on crypto trading gains above 2.5 million won ($2,260) each year. Korean authorities first finalized the tax rate in July 2020.
The postponement of a new crypto tax in South Korea comes in regards to the efforts of local cryptocurrency advocates. In October, the Korea Blockchain Association requested the government to delay the implementation of its new tax framework until 2023. The association did not clearly state it was against the 20% tax rate, but stated that local crypto companies need an acceptable period of time to prepare for laws.