Changes aimed at delaying the taxation of virtual assets such as South Korean cryptocurrency have been approved by an important parliamentary committee. The draft legislation aims to postpone Seoul’s plan to impose a 20% tax on crypto trading proceeds.
Before the election, major political parties support tax cuts for South Korean cryptocurrency investors
The South Korean Parliament is taking measures to tax the profits of digital asset investments for one year. Despite disagreements with the government itself and the main opposition party, the People’s Power Party, this move was supported by the ruling Democratic Party.
Korea’s Joongang Daily noted that these amendments also envisage increased capital gains tax exemptions for real estate sales in the event of rising housing prices. Korean politicians believe that this is a popular proposal before the upcoming presidential election in March next year. . A report.
The Strategy and Finance Committee is in National Assembly The amendments to the corresponding terms were passed at the meeting on Tuesday. The vote came after its taxation subcommittee approved the amendment at a meeting on Monday.
Authorities need more time to establish a tax system for crypto assets
South Korea and North Korea agreed to postpone the adoption 20% tax The annual profit of virtual asset investment exceeds 2.5 million won (US$2,102). The government plans to introduce the tax on January 1, 2022, but recent votes indicate that the tax may be suspended until 2023.
The Democrats have been pushing for the postponement because investment in cryptocurrencies has become very popular among young voters, who have also found it difficult to save enough money to buy a house when housing prices are skyrocketing. The party also hopes that the capital gains tax exemption for single home owners whose selling price has increased from 900 million won (US$1 million) to 1.2 billion won (US$1 million) will help increase the supply of houses on the market.
Representative DP believes that Korean tax authorities need more time to establish an appropriate tax system for virtual asset investment. However, Finance Minister Hong Nam Ki opposed the delay, saying that “the government is ready to impose taxes on virtual assets immediately.” Nevertheless, he pointed out that the executive power will abide by any decision of the parliament, and the parliament is expected to vote on the amendment in early December.
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