Il Ministry of Economy and Finance announced that the earnings that come from trading and possessions of crypto assets, including the Bitcoin and other cryptocurrency, will be taxed in Korea South. Specifically, a 20% tax on profits will be implemented starting from 1 January 2022. This tax will be applied to profits that are used through cryptocurrencies and which are greater than 2,5 million won, i.e. above $ 2300. Those who will have earnings below this threshold, however, they will be exempt from the 20% tax.
South Korea the opposition of enthusiasts in the field of cryptocurrencies and lobbyists wanted to introduce this tax as early as 2020, but had pushed the government to postpone their implementation even several times. A starting date, therefore, after this suspension, had already been proposed by the South Korean regime, later then postponed to 2023, but which now back again back to 2022.
Now it seems that instead we want to return to the implementation of this tax starting from January 2022, as recognized by South Korea and its Ministry of Economy and Finance, as regards Bitcoins and also other cryptocurrencies that therefore from this date will no longer be classified as tax-free hobby earnings.
According to the Korea Herald: to calculate the taxation on cryptocurrencies, it will be necessary to calculate the basis of the average daily price over 30 days, and over the 30 days following receipt of cryptocurrencies as an inheritance or gift.
As of February 10, after the decision of Ministry and Economy of South Korea, 38 citizens signed a protest petition against this decision. If the 200 signatures were to be reached, by the end of March, it will be possible to force the South Korean government to give an answer.
In accordance with the provisions of the reform of the Specific Financial Transaction Act, the exchange of cryptocurrencies will soon be subject to a new regulatory control, which provides for more stringent procedures in the field of cyber security. The regulation will force implementation, according to the Korea Herald real name account authentication.