South Korea Plans to Introduce Cryptocurrency Income Tax in 2025
Date: 2024-11-21 Author: Gabriel Deangelo Categories: IN WORLD
The South Korean parliament will no longer delay the introduction of a cryptocurrency income tax and plans to begin implementing it in January 2025. The Democratic Party of Korea (DPK), which has a majority in parliament, has confirmed its readiness to implement these changes as scheduled.
Initially, the tax of 20% (or 22% taking into account municipal fees) was supposed to be introduced in 2022. However, due to strong criticism from investors and representatives of the crypto industry, this decision was postponed twice. Now, a new date for the tax to come into effect has been set - January 1, 2025.
Previously, the possibility of postponing the implementation of the tax to 2028 was discussed, but the final decision was made in favor of implementation on schedule. According to the current bill, the tax will apply to citizens whose annual income from cryptocurrency transactions exceeds 2.5 million won, which is equivalent to about $1,795.
At the same time, various measures related to cryptocurrency taxation are being taken around the world. For example, the tax authorities of Brazil and South Africa have begun requesting information about users on crypto exchanges, and Kenya is introducing a system for monitoring crypto transactions in real time.
At the same time, some countries have abandoned the taxation of crypto assets. For example, the UAE authorities have abolished the value-added tax on cryptocurrency transfer and conversion transactions. Turkey has also decided not to introduce a tax on crypto trading this year.
The upcoming tax in South Korea indicates a growing desire by states to regulate cryptocurrency markets, but approaches to this issue remain different depending on the economic and political circumstances of each country.
