Representative from the Tax Subcommittee in Parliament which is the legal body of South Korea has achievedagreementThe bipartisan on Nov. 29 approved an amendment that could postpone crypto taxation by a year, but if the amendments pass Congress on Dec. 2, taxation will begin Jan. 1, 2023, not the year. 2022 as previously planned
The Democratic Party of Korea lawmakers pushed for the postponement of the law. It has condemned shortcomings in the data collection process implemented by the National Tax Service (NTS).
The procedure involves using a 0 KRW ($0) cost basis for crypto assets held in personal wallets. which cannot prove the purchase price This creates a significant tax burden for long-term holders of coins in their personal wallets before the tax law comes into force. And they are taxed on the full asset price. Not just the profit
Representative Kim Young-jin, Chairman of the Tax Subcommittee also pointed out the problem of demanding citizens to pay taxes to cryptocurrencies While the government does not have an official definition of cryptocurrency or what is a digital asset
“Inconsistent system of collecting taxes. As well as not having a clear background on how the digital currency is formulated in our system… It is probably only in Korea that taxation comes before regulations.”
Finance Minister Hong Nam-ki feels that the tax system should be equal. To provide fair participation for those who profit from trading cryptocurrencies.
With the tax debate that lasted for more than a year. This has led to misinformation and confusion among citizens and lawmakers. This is evident from the controversial news reports surrounding the tax period throughout 2021.
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