According to Foresight News, the South Korean government has postponed the implementation of the new virtual asset tax law to January 2025 to address the tax burden of individual investors and regulatory clarification issues. 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 personal income tax and withholding tax for non-residents and foreign companies. Non-resident individuals and foreign companies will face withholding tax when transferring, exchanging or withdrawing virtual assets on exchanges. The current law is unclear whether Korean exchanges must withhold taxes before the new amendment takes effect.
