- Reportedly, The South Korean National Assembly Research Service (NARS) has claimed tax on cryptocurrency gains set for 2023.
- It needs to maintain the 2.5 Million won limit, not 50 Million won as mentioned by the president.
- This cryptocurrency tax of 20% on more than 2.5 Million won worth of digital assets income is all set to initiate next year.
According to a recent report, The South Korean National Assembly Research Service (NARS) has claimed a 20% tax on cryptocurrency gains set for the next year, and it should maintain a 2.5 Million won limit which equates to US$1,942.20. And this is in opposition to the new President Yoon-Suk Yeol’s initiative to raise the limit to 50 Million won.
The Tax Start Date Not To Be Delayed To 2025
The NARS Current Issues and Analysis report highlights that the digital assets gains need to be kept under a financial investment income and facilitate deduction of loss carryover.
Additionally, this report also highlighted that the crypto tax start date should be Jan 1, 2023, and should not be delayed to the year 2025, as suggested by the nation’s deputy prime and finance minister nominee Choo Kyung-ho earlier.
Furthermore, uplifting this level of crypto tax limit to 50 Million won to match that stock of gains was a promise of Yoon to the voters during the election campaign. Earlier this month, Yoon’s Presidential transition committee cited that the taxation would be carried on following the legislation of investor protection measures.
This cryptocurrency tax of 20% on more than 2.5 Million won worth of digital assets income is all set to initiate next year. It was earlier set to roll out this year on Jan 1, but the critics emphasized that the decision is still at the early stage and considered the lack of investor protection measures. Additionally, the mark of 50 Million won was also a factor to consider.
As it was highlighted earlier, the year 2022 was to bring regulations and taxations for the crypto industry worldwide, and this instance is proof of that.
Source: https://www.thecoinrepublic.com/2022/05/13/south-korean-presidents-promise-to-increase-crypto-tax-limit-will-remain-unfulfilled/