Crypto Tax Plan Moves Forward
South Korea’s ruling Democratic Party confirmed plans to implement a 20% crypto tax (22% with local tax) on January 1, 2025. Originally scheduled for 2022, the tax has been delayed twice due to pushback from investors. The plan will now proceed as scheduled, despite calls for further postponement.Higher Exemption Threshold
To ease the tax burden, the exemption limit will increase from $1,795 to $35,919 in annual crypto gains. The revised plan also allows taxpayers to use a percentage of the sale price as a proxy for the original purchase price if acquisition records are unavailable. This aims to address market volatility and simplify compliance.Legislative Timeline
The Democratic Party plans to pass the amended tax bill through the National Assembly by late November. The higher exemption limit is expected to significantly reduce the number of taxpayers affected, effectively nullifying the tax for most retail investors. The move reflects South Korea’s cautious approach to balancing regulation and market growth.
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