Korean lawmakers propose delaying crypto tax rule to January 2022
November 25, 2020, 12:44AM EST
1 min read
The South Korean congress is reportedly proposing to delay the commencement of a crypto income tax rule by three months to January 2022.
According to a report from South Korean media The Dong-a Ilbo on Wednesday, the National Assembly's planning and finance committee has recently issued a report suggesting it's necessary to consider implementing the crypto income tax rule from at least January 1, 2022.
South Korea's Ministry of Economy and Finance amended its tax code in July this year where it finalized a plan for charging local residents a 20% tax on gains from crypto trading that are worth more than 2.5 million Korean won, or about $2,000.
The government's plan, which is subject to the approval from lawmakers in the National Assembly, sought to enforce the crypto income tax rule starting from October 2021.
The Dong-a Ilbo report said the reason why the National Assembly considers delaying the rule's effective date is due to concerns raised by local crypto exchanges for not having enough time to build a proper tax reporting infrastructure.
The report said because the ratified "Specific Financial Information Act" will be enforced from March next year, crypto exchanges must also complete a reporting system by September 2021 for having real names of deposit and withdrawal accounts.
The report added that the tax subcommittee under the National Assembly is expected to decide on a specific taxation time next week.
Today the always-on demands of online markets have to be matched with the ability to access opportunities instantly and with no limits. Historically correspondent banks would move large sums of money for those needing to transfer funds while creating bottlenecks of unnecessary friction.
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