South Korea’s Ministry of Economy and Finance said Wednesday it has finalized a legal amendment after tax rules were revised in 2020, according to a report from CoinDesk Korea.
- According to a legislative notice, the amendment is now to be implemented within a month, pending final meetings by vice ministers and South Korea's Cabinet.
- The Ministry said cryptocurrency users will face a 20% tax on profits over 2.5 million South Korean won (US$2,262).
- The tax had been slated for implementation in October 2021, but was last being pushed forward to January 2022, according to an earlier report.
- The National Assembly said in November that more time was needed to build the relevant tax infrastructure after cryptocurrency exchanges indicated they would struggle to meet the earlier deadline.
CORRECTION (Jan. 7, 17:37 UTC): This article previously cited a report that incorrectly stated South Korea’s crypto taxation plans were expected for 2023, a year behind schedule. As confirmed by CoinDesk Korea, the new tax plan is still expected for 2022.
CORRECTION (Feb. 22, 12:25 UTC): This article previously stated the 20% tax applied to profits exceeding 50 million South Korean won or US$45,685. The new figure has been updated to reflect a 20% tax will be applied to profits exceeding 2.5 million South Korean won or US$2,262.