According to local news outlets, the South Korean government is considering a tax deduction system for crypto-related expenses such as transaction fees and commissions, which could result in a decrease in overall taxes paid.
Based on reports from local news sources, South Korea is likely to postpone the implementation of its crypto gains tax for an additional two years.
The Democratic Party of Korea, the majority party in the legislature, has agreed to the proposed delay put forth by the government and the ruling People Power Party, as stated by ChosunBiz. If approved, this will be the third time the country has delayed the 20% tax (22% including local tax) on cryptocurrency gains over 2.5 million Korean won ($1,784).
The vote on this proposal is set to take place during the National Assembly’s plenary session on Monday. Previously, the Democratic Party had advocated for the tax plan to go into effect on its originally scheduled date of January 1, 2025, but with a higher threshold of 50 million Korean won ($35,714) before the tax would be applied, instead of the current threshold of 2.5 million won.
During a press briefing on Sunday, Park Chan-dae, the floor leader of the Democratic Party, reportedly stated that the party agreed to the delay as it believed that the tax plan needed further regulatory refinement.
Additionally, there have been discussions of implementing a tax deduction system for cryptocurrency expenses such as transaction fees and commissions, which could potentially result in a decrease in overall taxes paid, according to local news sources.
