South Korean Lawmakers Consider ‘Abolishing’ Crypto Tax Law
South Korean lawmakers may “abolish” a new crypto tax law, six months before it even comes into force.
According to Hanguk Kyungjae, the National Assembly Legislative Research Service mentioned the possible crypto tax “abolition” debate in the latest edition of the National Assembly Legislative Policy Guidebook.
MPs are set to vote on proposals that would scrap a proposed tax on gold investment. However, some have argued that such a move would discriminate against investors in other assets like stocks and crypto. The guidebook’s authors noted:
“[MPs] must decide whether and when to implement the virtual asset income taxation system in conjunction with their discussions [about] gold investment tax.”
The Legislative Research Service noted that some believe “virtual assets are investment-focused [assets] like stocks.”
The service claimed that “virtual assets” are “bought and sold” much like “stocks.” It explained:
“[Lawmakers] must consider tax parity and fairness [if they] abolish the gold investment tax. It could be argued that [the crypto tax] should also be postponed or abolished.”
Lawmakers have previously voted to delay the launch of a flat-rate 20% tax levy on crypto-related “income” of over 2.5 million won (around $1,810) per year.
With lack of regulatory framework, ‘crypto whale’ misses out on lucrative market opportunitieshttps://t.co/uSvTG1kQYg
— The Korea Herald 코리아헤럴드 (@TheKoreaHerald) June 3, 2024
The much-maligned “crypto tax” was first voted into law at the start of the decade. But the tax proved divisive in the assembly from the very outset.
It was initially intended to come into force in January 2022. But lawmakers decided to delay it by a year in late 2021.
Instead of coming into force on January 2023, however,
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