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South Korea May Delay Implementation of 20% Crypto Tax Till 2022

South Korea May Delay Implementation of 20% Crypto Tax Till 2022

South Korea May Delay Implementation of 20% Crypto Tax Till 2022

The National Assembly is pushing for a delay to the tax proposal to allow exchanges more time to prepare.

The National Assembly is pushing for a delay to the tax proposal to allow exchanges more time to prepare.

The National Assembly is pushing for a delay to the tax proposal to allow exchanges more time to prepare.

AccessTimeIconNov 25, 2020, 11:25 AM
Updated Aug 19, 2021, 5:50 AM

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South Korea's National Assembly is pushing for a delay to the introduction of specific taxation for digital assets.

  • According to a report Wednesday by local news source DongA.com, a proposed legal amendment bringing in the tax regime is planned to come into effect as of October 2021.
  • However, the National Assembly said more time is needed to build the relevant tax infrastructure after cryptocurrency exchanges said they couldn't be ready by the deadline.
  • As such, the National Assembly is seeking to delay the start of the taxation period to January 2022.
  • The matter is expected to be decided by the assembly's Tax Subcommittee as soon as possible.
  • The Ministry of Economy and Finance tabled the proposal in July, seeking to bring in a 20% levy – plus a 2% local income tax – on cryptocurrency trading profits above 2.5 million KRW (around $2,260).

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