- The KDP has agreed to a 2-year suspension on the introduction of the digital asset capital gains tax.
- The PPP said that it is “not advisable” to tax cryptocurrency quickly.
South Korea’s Democratic Party has agreed to postpone the implementation of the country’s cryptocurrency gains tax for another two years, reversing its previous position on the matter.
Korea Democratic Party (KDP) floor leader Park Chan-dae revealed on December 1st that the KDP has agreed to a two-year suspension on the introduction of the digital asset capital gains tax that the government and the governing People’s Power Party (PPP) had suggested during a press conference.
Not Advisable to Tax at this Stage
The country’s cryptocurrency gains tax regulation was set to take effect in January. Nonetheless, the latest news will hasten the tax’s implementation until 2027. The PPP has advocated for a three-year crypto gains tax grace period. Although the government had previously suggested a two-year period.
There will be a tax on cryptocurrency gains in the nation. Although the governing party formally suggested delaying its introduction on July 12. The PPP said that it is “not advisable” to tax cryptocurrency quickly. And that investors would pull out of the industry as a result. In keeping with a campaign pledge, the party sought to postpone implementation until 2028.
The KDP was adamantly opposed to the government’s and the governing party’s plans to apply the crypto tax before deciding to back down. The governing PPP’s tax deferral scheme was criticized by the KDP on November 20 for being nothing more than a political ploy that the party planned to use in next elections. The Democrats, on the other hand, have said that they want to implement their proposal to tax cryptocurrency in 2025.
The KDP proposed raising the tax threshold from $1,800 to $36,000 rather than postponing the crypto tax. The group in question claimed that this would primarily impact major stakeholders.
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