- South Korea will impose a 20% tax on crypto gains exceeding 50 million won, starting January 2025.
- The revised tax plan excludes smaller investors and aligns crypto policies with stock market taxation guidelines.
- OECD’s 2027 data exchange initiative will support South Korea’s efforts to track and tax international crypto transactions.
South Korea’s Democratic Party will begin crypto taxation in January 2025. Jin Sung-joon, the policy committee chairman, announced the government’s decision during an interview on MBC Radio’s Attention View. He confirmed that officials will not delay the tax implementation further to ensure legal stability and predictability.
The revised legislation imposes a 20% tax on crypto gains exceeding 50 million won ($35,919) and adds a 2% local tax. This new threshold replaces the earlier limit of 2.5 million won ($1,791), which faced heavy opposition from investors. Lawmakers revised the limit to align crypto taxation with stock market policies and address investor concerns.
Democratic Party Opposes Further Delays
The ruling People’s Power Party (PPP) suggested delaying crypto taxes until 2028. The Korea Democratic Party (KDP) rejected this proposal, labeling it a political strategy for future elections. The KDP advocated for immediate implementation to ensure consistency in legislation and address the expanding crypto market.
The KDP explained that raising the taxable threshold to 50 million won primarily impacts high-value investors. Party officials have stated that the new plan excludes smaller investors while maintaining fair taxation policies for all financial assets.
South Korea Tackles Transaction Tracking Issues
Jin has acknowledged the difficulty in tracking crypto transactions on foreign exchanges. However, he confirmed that authorities will enforce taxes on domestic transactions. Officials will rely on enhanced monitoring systems to strengthen compliance measures.
The cross-border exchange of cryptocurrency transaction data by OECD nations will commence in 2027.This initiative will improve tracking efforts worldwide and support South Korea’s crackdown on illegal activities.
Revised Tax Plan Eases Investor Concerns
South Korea had planned to implement crypto taxation in 2021 but postponed it after investor backlash. The government raised the taxable threshold and adjusted policies to address stakeholder concerns. These revisions aim to balance investor confidence with tax equity while ensuring the government collects revenue from large-scale gains.
The post South Korea to Implement Crypto Taxation in January 2025, Targeting High-Value Gains appeared first on Crypto News Land.
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