South Korea propose delaying crypto tax rule to Jan 2022

The South Korean congress is reportedly proposing to delay the commencement of a crypto income tax rule by three months to January 2022. The reason why the National Assembly considers delaying the rule’s effective date is due to concerns raised by local crypto exchanges for not having enough time to build a proper tax reporting infrastructure. 

National Assembly of South Korea in Seoul

According to a report from the local newspaper The Dong-a Ilbo on November 25, the National Assembly’s planning and finance committee has recently issued a report suggesting it’s necessary to consider implementing the crypto income tax rule from at least January 1, 2022.

Ministry of Economy and Finance of Korea submitted a tax law amendment bill that levies an income tax of 20% on the excess if it invests in cryptocurrency and earns more than 2.5 million won per year (about $2,250) from October.

The Dong-a Ilbo said because the ratified “Specific Financial Information Act” will be enforced from March next year, crypto exchanges must also complete a reporting system by September 2021 for having real names of deposit and withdrawal accounts.

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