South Korea Delays Crypto Tax Implementation to 2025
- South Korea’s new crypto tax law, effective January 2025, exempts personal exemptions from increased tax burdens.
- The law includes income tax on residents, withholding tax on non-residents, and gift tax on virtual assets.
- Personal tax credits remain unchanged for those earning over KRW 1 million annually from crypto investments.
South Korea’s cryptocurrency investors can breathe a sigh of relief as the government has delayed the implementation of new virtual asset tax regulations until January 2025.
The new rules, which were initially planned for early 2023, have been pushed back to address concerns about their impact on individual investors’ tax burdens and to clarify certain aspects of the regulations. This update addresses concerns that investors’ capital gains from crypto assets could increase their tax burden. However, it has been clarified that income from crypto investments, categorized as “other income subject to separate taxation,” will not influence personal tax credits.
The new rules cover several tax types: gift tax for residents, income tax for individuals, withholding tax for non-residents and foreign companies, and corporate tax for local c…
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