South Korea’s crypto tax code to be implemented next year, finance minister said

South Korea’s crypto tax code to be implemented next year, finance minister said

Minister Hong Nam-ki has expressed his opposition to the proposed postponement and wants the crypto tax code to enter into force as originally planned.

South Korea’s crypto tax code will go into effect next year. The country’s finance ministry said implementation of the new tax code will continue as planned despite steps taken by the majority Democratic Party to postpone it until 2023.

South Korea’s Strategy and Finance Minister Hong Nam-ki said the crypto tax code will come into effect on January 1, 2022, Co-telegraph reported. Under the new code, the government will impose a 20% tax on income derived from crypto transactions in excess of 2.5 million Korean won (approximately $ 2,100).

Earlier this month, the Democratic Party announced its intention to move implementation of the Crypto Tax Law from 2022 to 2023. A representative of the ruling party highlighted the difficulty of securing the data to be used for taxes on crypto exchanges and P2P transactions.

“In a situation where the relevant tax infrastructure is not sufficiently established, deferring tax on virtual assets is not an option, but an inevitable situation,” said Noh Woong-rae. The lawmaker is a member of the Democratic Party of Korea, which has a slim majority in the South Korean National Assembly.

However, Minister Hong Nam-ki has expressed his opposition to the proposed postponement and wants the crypto tax code to enter into force as originally planned. During a session of the National Assembly on September 15, the Minister of Finance expressed his opposition to the question of whether it is reasonable to move the implementation of the capital gains tax on the stock market. and the tax on virtual assets in 2023.

“In the past, it was almost impossible to levy taxes on virtual asset accounts, so no taxation was made.[…,” Hong Nam-ki said on Wednesday. “The foundation has now been laid, and based on that, we will be taxed starting next year.”

The Democratic Party’s move could be facing an uphill battle due to Hong’s opposition. The party only holds a slim majority in South Korea’s National Assembly.

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