Korea’s National Assembly Suggests Delaying Income Tax Rule on Crypto Assets to Jan 2022
South Korean lawmakers have allegedly proposed to delay the upcoming income tax rule on crypto-assets by three months from its scheduled commencement date in October 2021. According to the Dong-a Ilbo, a South Korean media which first reported this news, the law might come into effect later in January 2022. The report notes that South Korea’s National Assembly, led by its planning and finance committee, recently tabled a report to suggest this law's delay. This is because local crypto exchanges have asked for more time to develop proper tax infrastructures to meet the reporting requirements. Through the Ministry of Economic and Finance, South Korea’s government made amendments to its tax code back in July. The new framework, which is yet to be approved by the National Assembly, proposed a 20% capital gains tax on crypto trading activity for income above 2.5 million Won ($2000). As earlier reported by BEG, the suggested South Korea tax code details how transacting parties will annually report their taxes. It outlines that tax payments associated with crypto assets will be paid in May, per the ‘Taxation on Virtual Asset Transaction Income’ section on the new tax code. Notably, the proposed tax on virtual assets is applied to both residents and non-residents that leverage South Korea-based crypto exchanges for their digital asset activity. With the commencement dates pushed back, the planning and finance committee is expected to update in the coming days.