Korean Finance Minister Fights Bill to Postpone Crypto Tax Law

The Democratic Party, in South Korea’s National Assembly, intends to pass a bill postponing the crypto tax law by the end of October. In detail, Kim Byung-Ook, a National Assembly Representative from the Democratic Party, asked the Minister, in a National Assembly for the crypto tax to be postponed until 2023.

Also, the ruling party could pass the postponement bill if they can gather the votes notes. This is a statement by Representative Noh Woong-rae from the Democratic Party. There is not the adequate infrastructure in place for the government to calculate and collect crypto taxes.

Isn’t it reasonable to levy the stock market capital gains tax and virtual asset tax in 2023? said Kim

However, South Korea’s Minister of Strategy and Finance, Hong Nam-Ki has vowed to fight the bill. More so, Hong says that the crypto tax code will come into effect on January 1st, 2022 despite moves to postpone it.

Specifically, the crypto law charges a 20% tax on income generated by crypto transactions. In particular, these are crypto transactions in excess of 2.5 million KRW, (app $2100 USD). As of now, the National Tax Service (NTS) plans to rely on crypto exchanges to report users’ transaction data for the purpose of calculating taxes.

Meanwhile, Hong states that the tax would come into effect as planned despite their opposition. Hong is a member of the minority People’s Power Party (PPP) in the country’s government. The tax law had already been drafted and completed.

Hong expresses that it’s now possible to collect taxes on virtual asset accounts. Additionally, taxation is starting next year despite that there is opposition.