According to a report by “The Block,” Jeong Jung-hoon, the Deputy Director of the Tax and Customs Office of the Ministry of Economy and Finance in South Korea, stated at a policy briefing earlier this week that the South Korean Parliament should discuss whether to include cryptocurrency gains in the plan to abolish the capital gains tax on financial investments.
Local media “ZDNet” reported on Wednesday (17th) that Jeong made the above comments in response to public inquiries about whether cryptocurrency taxes should be abolished along with financial investment taxes. The government, led by South Korean President Moon Jae-in, intends to eliminate taxes on financial investments such as stocks and funds to support citizens’ wealth accumulation and financial planning.
South Korea’s cryptocurrency tax system will take effect on January 1, 2025. Taxpayers with cryptocurrency earnings exceeding 2.5 million Korean won (approximately $1,865) will be required to pay a 22% tax. The tax system for financial investment gains is also scheduled to be implemented on the same day.
According to reports, Jeong stated that the South Korean government plans to submit an income tax law amendment related to financial investment taxes by the end of January or early February.
The South Korean parliamentary elections are scheduled to be held on April 10th, which could mean that current legislators have only a few months left to handle the proposed amendment.
