According to The Block, the ruling Democratic Party of Korea plans to implement cryptocurrency taxation starting in early 2025.
However, the party hopes to raise the tax exemption limit from approximately $1,795 to $35,919.
According to reports from Seoul News, the ruling party in South Korea intends to continue pushing forward the plan to tax cryptocurrency gains starting from January 2025, rather than approving further delays.
Initially, a 20% tax rate on cryptocurrency gains (22% including local taxes) was scheduled to take effect on January 1, 2022, but due to strong opposition from investors and industry experts, the plan has been postponed twice and is now set to be implemented on January 1, 2025.
Although there had been discussions and proposals for further delays, one of the suggestions being to start in 2028, local media reports indicate that the Democratic Party of Korea (DPK) is determined to implement the tax plan as scheduled.
Nevertheless, the party is revising the plan to raise the tax-free limit on cryptocurrency gains from 2.5 million won (approximately $1,795) to 5 million won (approximately $35,919).
Considering the volatility of the cryptocurrency market, the revised plan reportedly allows taxpayers to use a certain percentage of the sale price as a substitute for the original purchase price in the absence of precise purchase records.
Reports indicate that the Democratic Party pointed out that raising the tax-free threshold to 5 million won effectively amounts to abolishing the tax plan, as only a few investors would exceed this threshold.
The DPK plans to pass the revised plan through the parliamentary tax subcommittee vote on November 25 and at the legislative committee plenary session on November 26.