South Korea's 22% crypto tax was written into law in 2020 to start in 2022. It is now heading for its fourth delay, to 2029.
A presidential office official told Seoul Economic Daily on Sunday that the discussion "has moved toward delaying" the tax, which is still set to start on Jan 1, 2027. Hankyoreh was told the same. The main reason given is the US: it only joins the OECD's crypto data-sharing system, CARF, in 2029, so taxing now would fall mostly on users of Korean exchanges.
The start date has already moved from 2022 to 2023, then 2025, then 2027. A 2029 start would come eight years after the law was passed.
Yearly gains from selling or lending coins like Bitcoin, after losses are netted, are taxed at 22% above a 2.5M won deduction. A trader who makes 10M won (about $7,550) in a year would owe 1.65M won, about $1,245, or 16.5% of the profit.
Nothing is final. Parliament still has to amend the Income Tax Act. Bills moving the start to Jan 1, 2029 are already filed and both main parties back a delay. Seoul Economic Daily expects the change in November's tax review.
Until that vote, Jan 1, 2027 is still the date in the law.
$BTC
#CryptoTax #Bitcoin
NFA. DYOR.
A presidential office official told Seoul Economic Daily on Sunday that the discussion "has moved toward delaying" the tax, which is still set to start on Jan 1, 2027. Hankyoreh was told the same. The main reason given is the US: it only joins the OECD's crypto data-sharing system, CARF, in 2029, so taxing now would fall mostly on users of Korean exchanges.
The start date has already moved from 2022 to 2023, then 2025, then 2027. A 2029 start would come eight years after the law was passed.
Yearly gains from selling or lending coins like Bitcoin, after losses are netted, are taxed at 22% above a 2.5M won deduction. A trader who makes 10M won (about $7,550) in a year would owe 1.65M won, about $1,245, or 16.5% of the profit.
Nothing is final. Parliament still has to amend the Income Tax Act. Bills moving the start to Jan 1, 2029 are already filed and both main parties back a delay. Seoul Economic Daily expects the change in November's tax review.
Until that vote, Jan 1, 2027 is still the date in the law.
$BTC
#CryptoTax #Bitcoin
NFA. DYOR.