According to Odaily Planet Daily, the South Korean government announced that the implementation of the new virtual asset tax law will be postponed to January 2025 to address the tax burden and regulatory clarification issues for individual investors. According to the new regulations, from 2025, the law will cover income tax for residents, withholding tax for non-residents, and gift tax on virtual assets. Crypto investment income is classified as "other income subject to separate taxation" and will not affect personal tax relief policies. For cryptocurrency investors with an annual income of more than 1 million won, personal tax relief remains unchanged.
The extension mainly affects resident individual income tax and non-resident and foreign companies’ withholding tax. Starting from January 2025, non-resident individuals and foreign companies will face withholding tax when transferring, converting or withdrawing virtual assets on exchanges. Current law is unclear whether Korean exchanges must withhold taxes before the new amendment takes effect. Investors welcomed the extension, believing that it will help the Korean government and industry better adjust to the smooth implementation of the new tax system.
