Opponent Political Party Proposes One Year Delay To Enact South Korea’s Cryptocurrency Tax Law

The opposition party in South Korea wants to postpone cryptocurrency tax rules until January 1, 2023.

The People’s Power Party, an opposition party in South Korea, has proposed a one-year postponement of tax rules on digital asset trading. Lawmakers are also planning to revise the interest rate, suggesting that investors making profits above $ 42,000 must pay 20%, while the original law taxes profits above $ 2,900.

I’m not ready for this.

According to current proposals, South Korea will begin taxing profits from cryptocurrency trading from January 1, 2022. Hong Namkhi, the country’s finance minister, even called the change “inevitable“.

However, the People’s Power Party of South Korea has its objections. The korea herald reported Legislators in this party plan to propose a bill that would allow them to postpone tax rules until January 1, 2023. Rep. Cho Myung Hee, a member of the opposition, explained:

“It is wrong to first levy taxes at a time when the legal definition of virtual currency is ambiguous. The intention is to ease the tax base to the level of income tax on financial investments so that virtual currency investors are not disadvantaged. “

Politicians will also push for a change in the tax rate. While financial regulators will topple all South Koreans who earn more than $ 2,900 from 20%, the People’s Power Party intends to raise that cap for people with profits from $ 42,000 to $ 251,000. Those with income above $ 251,000 will have to pay 25%.

However, Finance Minister Hong Namkhi again disagreed with this idea:

“It is difficult to defer the taxation of virtual assets in terms of policy credibility and legal stability.”

The Democratic Party also wants a respite.

Importantly, South Korea’s ruling Democratic Party has also tried to delay the introduction of tax rules. As CryptoPotato reports, lawmakers recently passed legislation that could even completely suspend the law. At the time, Democratic Party member Noh Woon Rei argued that the East Asian country did not have a well-thought-out plan to implement the tax procedure:

“In a situation where the relevant tax infrastructure is not sufficiently prepared, the postponement of taxation of virtual assets is no longer an option, but an inevitable situation.”

Woon-Rae added that Treasury’s policy on taxing businesses with digital assets will not work as planned. He explained that it is difficult to ensure proper taxation of overseas transactions with cryptocurrencies or peer-to-peer (P2P) transactions.

A source: CryptoPotato