South Korea is delaying its planned crypto tax on digital assets for another two years, Ministry of Economy and Finance tax policy chief Ko Kwang-hyo announced on Thursday.
See related article: S.Korea finance minister nominee wants to delay crypto tax for two years
Fast facts
- A 20% tax on crypto asset gains was scheduled to kick in on Jan. 1, 2023, but Ko’s announcement delays the levy to 2025.
- South Korea initially planned to impose a 20% tax on crypto from the start of 2022, but the plan was pushed back to 2023 due to heavy backlash from investors.
- A 20% tax on capital gains above 50 million Korean won (US$38,624.95) from stock trading, which was planned to go into effect from 2023, has also been delayed to 2025.
- Ko’s announcement was part of the new economic policy roadmap under President Yoon Suk-yeol, who previously said the crypto tax should come after preparing sufficient market infrastructure.
- The roadmap reiterated that the upcoming “Digital Assets Basic Act” will regulate issuance and listing of cryptocurrencies.
See related article: Crypto tax delay is a chance for South Korea to fix loopholes, experts say
