The plans of the South Korean National Assembly Delayed implementation of new income tax laws on cryptocurrency earnings following appeals from industry associations.
According to a November 25 report on Korean-language news site DongA The 20% tax, which would originally apply from October 2021, will only come into effect on January 1, 2022.
The delay is intended to give the digital currency exchange time to implement the changes required to integrate the new tax infrastructure.
As Cointelegraph reported, The new cryptocurrency tax structure was announced in July of this year and amounts to a 20% tax on profits above a threshold of 2.5 million won ($ 2,260 USD) per year.
The rules were originally scheduled to go into effect on October 1, 2021, which led to complaints from the Korean Blockchain Association (KBA).
The KBA explained that the short time window between the existing tax regulations, which no longer applied on September 30, 2021, and the new regulation, which will come into force the next day, would be difficult for the exchange, as it would initially be postponed until January 1 was requested. by 2023.
The government seems to have agreed to some extent, but only agreed to a three month extension instead of the 15 month extension requested.
Before the introduction of the new legislation Digital assets were treated like currencies and therefore did not pay taxes.