For at least another year, South Koreans will be able to trade crypto without having to pay any taxes on the profits that they make. This comes after politicians signed off on an amendment to a tax plan which opposed talk of the delay. This came as a huge blow to the government.
The National Assembly Planning and Finance Committee have decided to create a partial amendment to the Income Tax Act at a plenary session, with major media outlets reporting that the move to 2023 is now “de facto done.”
According to Maeil Kyungjae, as well as Sports Seoul and SBS, the last hurdle is now in sight and the National Assembly will vote on the amendment on December 2. However, there is currently no clear consensus in the house on the need for a delay, meaning that it is unlikely that the amendment will be denied on Thursday.
The committee agreed that tax bodies needed more time to prepare for the amendment. They also noted that the move is a clear attempt to win votes from younger voters in South Korea, who trade in crypto.
The South Korean government had already developed a draft bill proposing the introduction of a flat-fee 20% levy on annual trading profits over $2,100, which the National Assembly initially signed off on. This tax was meant to be launched on January 1, 2021.
The tax sparked rages of criticism among younger South Koreans. Rather than risking their chances at the upcoming election, the two major parties – the ruling Democratic Party and the main opposition People’s Power Party – instead both decided to delay the proposed taxation. The Democratic nominee has even hinted at further reforms to the law before it comes into force, and a heightened threshold could even be on the cards.
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