TL;DR Breakdown
- South Korea sets to implement a 20% crypto tax from 2022
- Cryptocurrency transaction now attracting new tax regime across the world
According to reports, the South Korean government is going to start implementing a 20% tax on some crypto transactions that meet certain thresholds. This was made known by the country’s Ministry of Economics and Finance.
A recent notice by the legislative arm of the country added that this crypto tax law was still subject to being approved by Vice Ministers and the cabinet members. However, it is expected that this would be done by the end of the month.
The Asian country is renowned for its forward-thinking policies and its embracing of technological advancements. The new tax regime coincides with the growing interest in cryptocurrency in the country.
This new crypto tax would apply to transactions with a profit margin of at least 50 million won, which is equivalent to $45,685. The tax rate increases to 25 percent when the profit hits 300 million won which is $273,950.
It was also stated that the tax was earlier scheduled to come into existence by 2021 but the authorities have accepted to move the implementation to the first quarter of 2022 due to the concerns of crypto exchanges.
The exchanges in the country had demanded for more time to implement all of the necessary technicalities for the application of the crypto tax.
Cryptocurrency now attracting new crypto tax regimes
There is no denying countries around the world now recognises the crypto industry has a viable means of earning more revenue for their pockets.
Countries like Kenya, India, Israel and a host of others have already announced new crypto tax regimes for their citizens.
Kenya, for instance, wants to implement a crypto tax known as the Digital Service Tax, or DST. This tax regime will see all e-market transactions attract a payment of 1.5 percent tax.
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