Opposition political party suggests a one -year delay by the South Korean crypto tax law: report
Opposition political party suggests a one -year delay by the South Korean crypto tax law: report
The People Power Party - the opposition party in South Korea - has reportedly proposed to postpone the upcoming taxation rules for the trade in digital assets. The legislator also intends to revise the tax rate percentage that suggests that investors who make profits of more than $ 42,000 should pay $ 20%, while the original legislation taxes profits over $ 2,900.
not ready for it
According to the current proposals, South Korea will begin taxing profits from the trade in cryptocurrencies from January 1, 2022. Hong Nam-Ki-Finance Minister of the country-even called The move "inevitable".
However,South Korea's People Power Party has their objections. The Korea Herald that the party is planning to present a bill with which Taxation rules could move by January 1, 2023. MP Cho MyOung-Hee-a member of the opposition-explained:
"It is not correct at a time when the legal definition of the virtual currency is ambiguous first.
The politicians would also strive for a change in the tax rate. While the financial supervisory authorities would strike every South Korean who generates more than $ 2,900 with 20%, the People Power Party intends to raise this limit to people with profits between $ 42,000 and $ 251,000. Those with winnings over $ 251,000 would have to pay 25 %.
The finance minister-Hong Nam-Ki-was once again not open to the idea:
"It is difficult to delay the taxation of virtual assets with regard to the reliability of politics and the legal stability."
The Democratic Party also wants a delay
It is noteworthy that the ruling Democratic Party of South Korea has also tried to postpone the upcoming taxation rules. How cryptocolor has been reported recently passed a draft law that could have completely suspended the legislation. At that time, Noh Woong-Rae-member of the Democratic Party-said that the East Asian nation had no well-thought-out plan to implement the taxation process:"In a situation in which the corresponding taxation infrastructure is not sufficiently prepared, the tax deflection for virtual assets is no longer an option, but an inevitable situation."
Woong-Rae added that the policy of the Ministry of Finance to enforce digital assets would not work as planned. He explained that it was difficult to ensure the proper taxation of foreign business with cryptocurrencies or peer-to-peer (P2P) transactions.
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