The South Korean government has reportedly postponed the 20% tax crypto gains by two years. The controversial 20% tax on crypto gains was supposed to come into effect from January 1, 2023, but now has been deferred to 2025.
The government officials announced their new tax reform plans on July 21, deferring the crypto tax policy to 2025, citing stagnant market conditions and the time required for the preparation of investor protection measures. The initial plans of imposing an additional 20% tax on crypto gains exceeding 2.5 million won ($1,900) in a one-year period remain unchanged.
The controversial 20% crypto tax has now been delayed for the second time since it was first announced in January 2021. The tax was first supposed to be introduced by January 2022, but lawmakers in the country deferred it to 2023, and now it has been delayed by two more years.
Kim Young-jin, Chairman of the Tax Subcommittee, one of the lawmakers that have opposed the crypto tax policy has called for the formulation of solid crypto regulation first. With a newly elected pro-crypto President in the country, Korea is hoping to regulate the crypto market first and then implement tax rules.