Outside Source
South Korea’s Democratic Party argued that increasing the threshold to 50 million won ($36,000) would mean only big players would be affected.
News
South Korea’s Democratic Party pushes forward with its plan to tax crypto gains at the start of 2025 but offers a resolution by increasing the threshold for taxable gains.
On Nov. 20, local media outlet Seoul Shinmun Daily reported that the Korea Democratic Party (KDP) had challenged the People’s Power Party’s (PPP) plan to delay crypto tax to 2028.
PPP, the country’s ruling political party, proposed on July 12 to delay the taxation of crypto gains to 2028. However, the KDP claimed in the report that the PPP’s crypto tax deferral plan is a political trick they aim to re-use in future elections.
Increasing the threshold from $1,800 to $36,000
Because of this, the KDP is pushing to implement its scheduled crypto gains tax in 2025. According to the political party, it’s willing to agree to an increase in the threshold for taxable crypto capital gains.
In the original tax plan, crypto investors must pay a 20% annual crypto gains tax for profits above 2.5 million won (about $1,800). However, the plan received backlash from stakeholders and crypto investors.
Because of this, the KDP offered a new plan to increase this to gains exceeding 50 million won (about $36,000). This would be similar to the country’s threshold for stocks.
The KDP believes that expanding the threshold for taxable gains is the same as abolishing the crypto tax. The political party believes there will be no tax effect since only a few investors would make more than $36,000 in profits from their crypto investments.
The party believes that with the new threshold, only big players will be hit with its planned crypto gains tax in the country.
Related: South Korean city threatens to sell crypto of tax debtors
Crypto taxation delay in South Korea
South Korea’s planned capital gains tax on crypto was initially scheduled to be implemented in 2021. However, backlash from crypto stakeholders and industry leaders led the South Korean government to delay the implementation of the tax to 2023.
After politicians recognized investor concerns, it was postponed to Jan. 1, 2025. If the KDP and the ruling party agree, the 20% capital gains tax could be implemented next year.
Magazine: Crypto spy jailed for life in China, YouTuber accused of $230M fraud: Asia Express
This article first appeared at Cointelegraph.com News
