South Korea’s government delays crypto taxation until 2025. On Thursday, 21 July 2022, the government announced the postponement of the crypto tax. Initially, they plan on setting a 20% tax on crypto gains. The delay has happened two times.
— Wise Advice By Sumit Kapoor (@sumitkapoor16) July 21, 2022
The Initial Plan of 20% Tax
The taxation plan has been on the government’s agenda since the growth of cryptocurrencies in the country. The planning of a 20% tax was first introduced in January 2021. It should have been coming into effect in January 2022. However, it got delayed to January 2023. Now, there is another delay in the tax. The tax plan has gained attention from the crypto community since its announcement. Some lawmakers in the country have been opposing the new tax plan. They mentioned the need for solid regulation first for this to work effectively.
The Delay of the Crypto Tax until 2025
In the government’s announcement, they cited the market condition as one of the reasons for the delay. There is a need for a stable market situation for this new plan to work. Another reason is time preparation to ensure that investors are safe to operate.
As anticipated, the Ministry of Economy and Finance in South #Korea today announced its proposal to postpone #tax on #crypto earnings until January 1, 2025 by citing "market conditions" and a lack of "investor protection policy" as reasons for the delay. pic.twitter.com/DLGv8lgOXI
— Jin Kang | HASHED (@jin___kang) July 21, 2022
South Korea has recently elected a new president, Yoon Suk-Yeol. The president has been known for his active involvement in the cryptocurrency world. The country is looking forward to making better crypto regulations and market conditions.
Thailand is another country that has proposed a similar tax plan. The 15% crypto gains tax has received attention and complaints from the community.