South Korean Draft Law Could Delay Crypto Tax for a Further 3 Years
A new South Korean draft law could delay the launch of crypto tax, meaning traders may avoid paying tax on their profits until 2028.
Under existing law, South Koreans will start paying a flat 20% rate on profits worth over an annual threshold of $1,800 from January 2025.
However, several lawmakers have pledged to “review” this law this year, all citing a multitude of reasons.
And now it appears, MPs are making a concerted effort to delay the launch of crypto tax until January 2028 at the earliest.
Multiple South Korean media outlets, including EDaily and TokenPost, reported that over a dozen lawmakers have proposed a bill that would “partially amend” existing tax laws.
This group reportedly includes Song Eon-seok, the chairman of the National Assembly’s Strategy and Finance Committee.
Bitcoin surges on rising possibility of Trump victoryhttps://t.co/GpmdtqSrIe
— The Korea Times (@koreatimescokr) July 14, 2024
Song, a member of President Yoon Suk-yeol’s People’s Power Party (PPP), is the MP for Gimcheon, in South Gyeongsang Province.
Song and his fellow signatories say they are concerned that introducing taxes on crypto traders will scare many away from the domestic market. The lawmakers were quoted as explaining:
“Investment sentiment in the virtual assets sector is on the decline. [We] expect that most investors will exit the market if taxes are imposed. This is due to the nature of virtual assets, which are high-risk assets. They are riskier investments than stocks.”
They claimed that there was now “an opinion” that the “hasty” introduction of crypto tax was “not desirable.”
Song explained that the tax system was not yet ready to start dealing with crypto tax declarations. He said:
“Many domestic experts believe that the
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