Finance committee approved legislation to delay crypto tax in South Korea - taxes
Finance committee approved legislation to delay crypto tax in South Korea - taxes
changes that are to shift the introduction of a tax to virtual assets such as cryptocurrencies in South Korea have been approved by an important parliamentary committee. The draft law is intended to delay Seoul's plan to raise a 20 percent levy to profits from crypto transactions.
Before the election, important parties support tax relief for crypto investors in South Korea
The South Korean Parliament takes steps to expose a planned tax on profits from investments in digital assets for another year. The step was supported by the ruling democratic party despite disagreements with the government itself and by the leading opposition People Power Party.
The changes that also provide for an exemption from the capital gains tax for real estate sales with increasing real estate prices are viewed by Korean politicians as a popular proposal before the upcoming presidential election in March next year, Korea Joongang Daily noticed in a report.
The strategy and finance committee of National Assembly passed the changes to the respective provisions in a meeting on Tuesday. The vote followed the approval of the revisions by his subcommittee for taxes during a session on Monday.
authorities need more time to set up a taxation system for crypto-assets
The two Korean parties have agreed to adopt a on annual gain from Investments in virtual assets of more than 2.5 million won ($ 2,102). The government planned to introduce the tax on January 1, 2022, but the latest coordination indicates that the tax will probably be suspended by 2023.
The Democratic Party has pushed to delay because investments in cryptocurrencies in young voters have become very popular, who also find it very difficult to save enough money for a house in exploding real estate prices. The party also hopes that the increase in capital gains tax exemption for single parents who will sell from a price from 900 million to 1.2 billion won ($ 1 million) will contribute to increasing the availability of apartments on the market.
representatives of the DP have argued that the Korean tax authorities need more time to set up an appropriate tax system for investing in virtual assets. However, Finance Minister Hong Nam-Ki rejected the delay and said: "The government is ready to tax virtual assets immediately". However, he noted that the executive would adhere to any decision of the parliament, which is expected to vote on the changes in early December.
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