Last Updated: 22 July 2022
It is a good thing that South Korea has a president who is positive about crypto. The country’s crypto owners would soon have to pay a 20% tax on crypto profits. This controversial tax is currently postponed until 2025, two years later than planned.
This probably has everything to do with the new president: Yoon Suk-Yeol. He took office in May, and crypto fanatics in the country were very positive about his arrival. He promised to make crypto tax-free and also pledged to work on appropriate regulation (including legalizing ICOs).
20% tax on profits of more than 1,870 euros
The former did not succeed, but, at the moment, it has been postponed. As of January 1, 2023, crypto investors would have to pay 20% tax on their funds. CoinTelegraph reports that this will not happen until 2025,. Whether it will be cancelled later by the president is not clear.
Even though the tax has now been moved, the original plan — to impose an additional 20% tax on crypto profits above 2.5 million won — remains in place. This amount (2.5 million won) is equivalent to about 1,870 euros.
Asian countries like to tax their crypto
South Korea is not the only Asian country that heavily taxes the crypto profits of its citizens. Thailand has a 15% tax, and India is even worse.
In India, crypto is taxed at 30%. And if the 30% on your profit was not enough, there is also a 1% tax on each transaction. This is called Tax Deducted at Source (TDS).
In India, nothing will change soon, as there have been many attempts to counteract this high tax. However, if we are to believe the promises of the South Korean President, South Korea may be able to get away scot-free before 2025.