It has been reported by the nation’s Ministry of Economy and Finance that profits made from both trading and holding cryptocurrencies will be subject to the tax.
However, the tax will be triggered when profits made from cryptocurrencies exceed 2.5 million won, or around $2,300, as gains made up to this point will be tax-exempt.
The report said that previously, South Korea aimed to levy the tax starting in 2020, but pushback from cryptocurrency enthusiasts and lobbyists saw the government delay the implementation of the tax several times.
South Korea is the latest country to announce a crypto taxation policy starting in 2022. Fortunately, gains made before this point will be tax-exempt. https://t.co/uHwaZLpL54 — Cointelegraph (@Cointelegraph) February 23, 2021
A 2022 start date was previously floated by the South Korean regime that date was then delayed until 2023.
Likewise, it appears that 2022 is back in the cards once again. After South Korea’s recognition of Bitcoin as a financial asset, BTC and other cryptocurrencies will no longer be classed as tax-free hobbies. Cryptocurrencies received as part of an inheritance, or those received as gifts will also be taxed.
Thus, the report stated:
“In such cases, the price of the asset will be calculated on the basis of the daily average price for one month before and one month after the date of the inheritance or gift.”