Finance Committee approves South Korean crypto tax deferral law – Taxes Bitcoin News

Finance Committee approves South Korean crypto tax deferral law – Taxes Bitcoin News

Changes aimed at delaying the introduction of virtual property taxes such as cryptocurrencies in South Korea have been approved by an important parliamentary committee. The bill seeks to delay Seoul’s plan to impose a 20 percent levy on crypto transactions.

Ahead of the election, major parties support tax breaks for crypto investors in South Korea

The South Korean parliament is taking steps to suspend the planned income tax on digital property investments for another year. The move was supported by the ruling Democratic Party, despite disagreements with the government itself, as well as the leading opposition People’s Power Party.

The amendments, which also envision increasing capital gains tax exemptions for real estate sales amid rising real estate prices, are considered a popular proposal by Korean politicians ahead of the upcoming presidential election in March next year, the Korea Joongang Daily reported.

Strategy and Finance Committee at national assembly made changes to the relevant provisions at Tuesday’s meeting. The vote followed the approval of audits by its tax subcommittee at its session on Monday.

Authorities need more time to establish a cryptocurrency taxation system

The two Korean parties agreed to postpone the adoption of a 20% tax to an annual return on investment in virtual assets in excess of 2.5 million won ($ 2,102). The government planned to introduce the tax on January 1, 2022, but a recent vote indicates that the tax is likely to be suspended until 2023.

The Democratic Party has advocated for a delay because investing in cryptocurrencies has become quite popular among young voters who also find it very difficult to save enough money for a home amid dizzying real estate prices. The party also hopes that increasing capital gains tax exemptions for owners of individual apartments selling from 900 million to 1.2 billion won ($ 1 million) will help increase the availability of houses on the market.

DP officials argue that the Korean tax authorities need more time to establish an appropriate tax system for virtual investment. However, Finance Minister Hong Nam-ki opposed the postponement, stating that “the government is ready to immediately tax virtual property”. He noted, however, that the executive would comply with any decision by parliament, which is expected to vote on the amendments in early December.

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Do you think South Korean lawmakers will support the proposed amendments regarding cryptocurrency taxation? Tell us in the comments section below.

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