South Korea Government Officials are indecisive about the Crypto Tax that will likely be effective in 2022. This news has created a whirlpool of conflicting reports that even officials can’t keep track of!
South Korea’s government officials have created confusion this year. The confusion is regarding the conflicting announcement of a possible amendment of the upcoming crypto tax. This amendment is said to come into effect in the year 2022.
In 2021, the Crypto tax debate has increased the heat in the National Assembly and South Korea’s Legislature on modifying the crypto tax. Further, if unchanged, the Govt will impose a 20% tax on the income produced by the crypto transactions. The tax will be applicable on above 2.5 million Korean currency or $2100.
Moreover, the NFT regulations are the latest example of the confusion over the assets of the crypto. Also, on Nov 5, FSC officials stated definitively that NFT would not be subject to the crypto tax based on FATF guidelines classifying that NFTs are different from cryptocurrency.
Also, some people are still suspicious if the government has the best interest of the crypto industry in mind. The reason why they are suspicious is that official policy direction seems to change direction so frequently. Furthermore, from April 2021, several proposals to postpone the tax from the Democratic Party have announced that retain a majority in the legislature. Further, the same occurred in September and will likely happen before the end of the year.