It’s a good thing South Korea has a president who is “pro crypto”. The country’s crypto owners would soon have to pay a 20% tax on crypto profits. This controversial tax is currently delayed 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 from that country were very positive about his arrival. He promised to make crypto tax free, and in addition promised that and would work on appropriate regulation (including legalizing ICOs).
20% tax on profits over 1,870 euros
As of January 1, 2023, crypto investors would have to pay 20% tax on their funds. That will now not happen until 2025, reports CoinTelegraph. Whether it will later be cancelled 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 over 2.5 million won – remains in place. This amount (2.5 million won) is equivalent to about 1,870 euros.
Asian countries happy to tax their crypto
South Korea is not the only Asian country that taxes its residents’ crypto profits heavily. Thailand has a 15% tax, and India is even worse.
In India, in fact, crypto is taxed at 30%. And if this 30% on your profit wasn’t enough, there is also a 1% tax on each transaction. This is called Tax Deducted at Source (TDS).
Nothing will change in India anytime soon, as there have been plenty of attempts to counter this high tax.
But if the promises of the South Korean press secretary are to be believed, South Korea may be able to get away unscathed before 2025.
