South Korea’s ruling party, the People Power Party, is pushing for a plan to defer taxation on cryptocurrency investment profits for two more years as part of its April general election campaign, local media reported.
The right-wing party will prioritize establishing a basic regulatory framework for cryptocurrencies before taxation, and plans to propose new regulations for the cryptocurrency industry during the upcoming term, local news outlet Herald Business Daily reported. reported monday.
The country’s cryptocurrency income tax is currently scheduled to go into effect in January 2025, after being delayed from its initial start date of January 1, 2023. Another possible delay could delay tax planning starting in 2027.
As part of the election campaign, the ruling party is considering new legislation that would include key elements for potential cryptocurrency regulation, including setting requirements for cryptocurrency custody service providers and token listings. The proposed regulations are expected to be added to Korea’s first cryptocurrency regulations, which are scheduled to take effect in July.
According to the report, the Democratic Party plans to finalize its key election promises by the end of this month. The People Power Party did not immediately respond to The Block’s request for comment.
Cryptocurrency Tax Debate
Last month, the representative of South Korea’s Ministry of Strategy and Finance said the legislature should discuss this. Abolition of income tax on cryptocurrency assetsThis is in line with the current government’s plan to abolish taxes on financial investments such as stocks and funds.
However, the People Power Party is not considering a complete abolition of taxation, the Herald reported.
In addition to the proposed postponement, the parties are also aiming to align the cryptocurrency tax threshold with the equity threshold. The tax plan imposes a 22% tax on cryptocurrency profits exceeding 2.5 million won ($1,875), while stock profits are only taxed if they exceed 50 million won.
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