PiCK
South Korea Presidential Office Reviewing Further Delay to Crypto Tax, No Decision Yet
Summary
- The presidential office said it is reviewing an additional delay to crypto taxation, but no decision has been made.
- It said the current crypto tax system applies a 22% tax rate after a 2.5 million won annual deduction to income from transfers and lending.
- It said the presidential office and the ruling bloc are reviewing several options, including another delay to the tax rollout, and that talks on an additional postponement could gather pace.
Forecast Trend Report by Period
South Korea’s presidential office said it is reviewing whether to further delay the implementation of taxes on virtual assets, but that nothing has been decided.
Yonhap News TV reported on October 25 that the office was responding to media reports saying the chances of another postponement were high. Its position was that the matter is under review and no decision has been made.
The presidential office is currently weighing several options, including delaying the start of crypto taxation again. Some observers say an additional postponement is the leading option.
Earlier, Kim Min-seok, leader of the Democratic Party, said the issue of crypto taxation should be settled this year and that the party and the government would intensive hold discussions to reach a conclusion.
As the presidential office is also reviewing a tax delay, talks between the party and the government on another postponement could soon gain momentum. There is also speculation that the policy direction may be finalized in the near term through a high-level consultation involving the party, the government and the presidential office.
Under the current crypto tax system, income from the transfer and lending of virtual assets is subject to a 22% tax on amounts above an annual deduction of 2.5 million won ($1,810). The rate includes a 20% tax on other income and a 2% local income tax.
