Opposition members of the South Korean parliament have proposed amendments to the draft law on taxation of income from cryptocurrencies. The changes may affect profits from 50 to 300 million won.
The opposition People’s Power Party has developed a proposal to simplify the tax collection process. MPs are again trying to postpone the introduction of taxation on income from investment in cryptocurrencies, which should come into force on January 1, 2022.
Under this law, 20% tax will be levied on income from cryptocurrencies over 2.5 million won (about $ 2,000). Equity income tax is effective in 2023 and taxes will be payable starting at KRW 50 million. Businessmen have already opposed this, but the decision has not been revised.
Now opposition MPs are in favor of a one-year delay. In addition, they insist on the introduction of a multi-level tax on cryptocurrency, in accordance with the tax regime on income from financial investments.
According to their proposal, instead of a 20% flat rate on profits over 2.5 million won, they are offering 20% on profits between 50 and 300 million won, and 25% on profits over 300 million won.
“It is wrong to introduce taxes at a time when the legal definition of virtual currency is ambiguous. The idea is to simplify the process to the level of tax on profit from financial investments, ”said Cho Myoung-hee, a member of the People’s Power Party.
Earlier, the introduction of income tax on cryptocurrencies was already postponed due to the fact that local exchanges did not have enough time to create an infrastructure for filing tax reports.
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