The government of South Korea has officially postponed a new cryptocurrency revenue tax system to 2022.
According to Yonhap on December 1st The Planning and Finance Committee of the South Korean National Assembly approved changes to the country’s tax laws, which will see a new cryptocurrency tax regime come into effect in January 2022.
25. NovemberLegislators proposed postponing the introduction of an income tax rule for cryptocurrencies to January 1, 2022 instead of October 2021.
The decision gives local cryptocurrency companies more time to adapt to the new tax laws. The recently approved changes will see investors in South Korea pay a 20% tax rate on crypto company profits that exceed 2.5 million won ($ 2,260) a year. The Korean authorities first set the tax rate in July 2020.
The postponement of a new cryptocurrency tax in South Korea is in response to efforts by local crypto advocates. In October, the Korean Blockchain Association asked the government to postpone implementation of its new tax framework until 2023. The association did not specifically state that it was violating the 20% tax rate, but it did Local cryptocurrency companies need a reasonable amount of time to prepare for the laws.
Don’t stop reading: