South Korea will implement a 20% tax on Bitcoin (BTC) and cryptocurrency profits starting Jan. 1, 2022. The nation’s Ministry of Economy and Finance announced that profits made from both trading and holding cryptocurrencies will be subject to the tax, reported the Korean Herald on Monday.
The tax will be triggered when profits made from cryptocurrencies exceed 2.5 million won, or roughly $2,300. Gains made up to this point will be tax-exempt.
South Korea previously aimed to levy the tax starting in 2020, but pushback from cryptocurrency enthusiasts and lobbyists saw the government delay the implementation of the tax several times. A 2022 start date was previously floated by the South Korean regime, however, that date was then delayed until 2023, as previously reported by Cointelegraph.
Now, it appears that 2022 is back in the cards once again. Following South Korea’s recognition of Bitcoin as a financial asset, BTC and other cryptocurrencies will no longer be classed as tax-free hobbies.
Cryptocurrencies received as part of an inheritance, or those received as gifts, will also be taxed. Referring to crypto gifts and inheritances, the Herald states:
“InTitle: South Korea fast tracks 20% tax on Bitcoin and crypto profits to 2022
Sourced From: cointelegraph.com/news/south-korea-fastracks-20-tax-on-bitcoin-and-crypto-profits-to-2022
Published Date: Mon, 22 Feb 2021 09:43:16 +0000