South Korean Crypto Tax Plans to Be Unveiled this Wednesday
The South Korean government is reportedly set to unveil further details about its plans to introduce tax for cryptoasset holders.
Per an unsourced report by SBS CNBC, Seoul will unveil a document outlining its proposals in a Tax Law Amendment bill – to be unveiled on July 22. The bill will seek to impose taxes on crypto earnings for the first time in the country.
The draft law will then be presented to the National Assembly, and will be bundled with a range of other tax changes, including an expected hike in cigarette tax, VAT reforms and stock market tax regulations.
The fact that it is bundled will likely mean that it will pass through parliament without a hitch in the upcoming autumn session – and could be promulgated as early as next year.
As previously reported, Seoul is now committed to crypto tax after years of toing-and-froing about the way it wanted to tax crypto earners.
Some wanted to tax crypto earnings much as lottery winnings are taxed in the country – as “other income” in income tax claims.
However, it appears that the Ministry of Strategy and Finance – which has the final say on such matters – is favoring a model that would instead involve imposing capital gains tax on trading profits.
A separate private members’ bill, introduced by an MP from the ruling Democratic Party, has also proposed introducing capital gains tax on crypto gifts and inherited tokens – in line with similar tax regulations imposed in nations such as the UK, Japan and the United States.
The private members’ bill could also be set for debate in the National Assembly, by as yet does not have the public support of any major political party.