The South Korean government has officially postponed the new tax system on cryptocurrency profits until 2022.

According to Yonghap, on December 1, the Planning and Finance Committee of the National Assembly of South Korea approved changes to the country’s tax rules, with the new cryptocurrency tax regime coming into effect in January 2022.

On November 25, the legislature proposed to postpone the adoption of the income tax rule for cryptocurrencies until January 1, 2022, instead of October 2021.

This decision will give local cryptocurrency companies more time to adjust to the new tax regulations. Recently adopted changes stipulate that South Korean investors will pay a 20% tax on cryptocurrency trading profits of more than 2.5 million won ($ 2,260) annually. Korean authorities abolished the tax rate for the first time in July 2020.

The delay in imposing a new tax on cryptocurrency in South Korea is in response to the efforts of local cryptocurrency advocates. In October, the Korea Blockchain Association asked the government to delay implementing its new tax system until 2023. The association did not explicitly state that this conflicts with the 20% tax rate, but did state that local cryptocurrency companies need reasonable time to prepare. To laws.

Source: CoinTelegraph