Financial investments being investigated for potential tax overhaul
South Korea, a leader in the global cryptocurrency space, is considering a groundbreaking measure that could abolish income tax on cryptocurrency profits. At a recent policy briefing, the Deputy Minister Jeong Jeong-hoon The Commissioner of the National Tax Service of the Ministry of Strategy and Finance hinted at the possibility of excluding cryptocurrency profits from income tax in line with broad changes in financial investment taxation.
Tax-free cryptocurrency profit outlook
Deputy Prime Minister for Economy and Finance Jeong Jeong-hoon emphasized the government’s review of the question of the possibility of abolishing income tax on profits from various financial investments, including cryptocurrency.
This comes in conjunction with the Yoon Seok-yeol government’s plan to abolish income tax on financial investments such as stocks and funds. The goal is to enhance citizens’ wealth accumulation and enhance financial planning.
Also Read: How to Report Cryptocurrency Losses and Save Taxes
Tax system changes and cryptocurrency environment
The cryptocurrency tax system, scheduled to go into effect on January 1, 2025, imposes a 22% income tax on income exceeding $1,865 (KRW 2.5 million). This is consistent with a broader framework targeting income from financial investments.
Chairman Chung mentioned that the government is aiming to revise the income tax law related to financial investments by the end of January or early February. However, thorough legislative discussions on the proposed amendments are becoming difficult due to the tight schedule, including the National Assembly elections on April 10.
disclaimer: The information provided is not financial advice. Investors are encouraged to conduct independent research and consider the unique risks and volatility associated with cryptocurrency investments.