#South Korea Will Enforce A 20% Tax On Gains From Crypto Trading Activities, Starting From January 2022
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According to the Yonhap news agency, the Korean National Assembly held a meeting, deciding to adjust the government’s tax collection plans. In particular, South Korea will begin to collect a 20% tax on income from crypto trading activities exceeding the $ 2,000 threshold, starting in January 2022.
South Korea will enforce a 20% tax on gains from crypto trading activities, starting from January 2022
Part of the plan seeks to impose a 20% tax on profits from cryptocurrency trading that exceed the 2.5 million South Korean won threshold, or about $ 2,000. For example, if you made a total of 5 million won by buying and selling Bitcoin in one year, they would pay 500,000 won for again above the base rate of 2.5 million won, the report added. And no income tax will be charged if the total income for a year is less than 2.5 million won.
The Korean Ministry of Economy and Finance completed a tax amendment plan in July, initially seeking to implement a 20% tax rate on income from cryptocurrency trading by October 2021.
However, the National Assembly last week proposed a three-month delay to January 2022 due to concerns of domestic firms not having enough time to build a suitable tax reporting infrastructure.
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