The South Korean Parliament has postponed the entry into force of the new Cryptovite Tax Act. This was reported by Cointelegraph with reference to the local DongA publication.
The 20% tax law on income from cryptographic transactions will come into force on 1 January 2022. Initially, the law was to come into force on 1 October 2021.
Parliament has postponed the deadline to allow time for Bitcoin Billionaire scam cryptocurrency exchanges to prepare for the inclusion in their infrastructure of solutions that will implement the law’s requirements.
The new tax structure was announced in July this year. Annual income over 2.5 million won (~$2,260) from crypt trading will be subject to 20% resident tax. Income below this amount is tax exempt.
The Korean Blockchain Association, an association of South Korean cryptographic companies, has criticized the timing of transition to new legislation and requested a postponement until 1 January 2023. Parliament agreed to extend the deadline by three months instead of 15 months.
Previously, digital assets in South Korea were treated as currencies and were not taxed. With the introduction of the new legislation, virtual assets will be classified as goods for which transactions are made for the purpose of sale.