South Korea, a major hub for cryptocurrency, is considering the removal of income tax on financial investments, which directly affects taxation on crypto earnings. Jeong Jung-hoon, the Deputy Director of Tax and Customs at the Ministry of Economy and Finance, indicated that the National Assembly might abolish income tax on crypto gains as part of their plan to remove taxes on financial investments.
This statement came in response to a question during a policy briefing earlier this week, as reported by local media ZDNet on January 17, 2024. The current administration under President Yoon Suk-yeol aims to support citizens’ wealth accumulation and financial planning by eliminating income taxes on financial investments such as stocks and funds.
The new tax regime for cryptocurrencies in South Korea is set to take effect on January 1, 2025, imposing a 22% income tax on crypto gains exceeding 2.5 million South Korean won (approximately $1,865). The same date is also targeted for the implementation of the new tax regime for other financial investment incomes.
According to local news, the South Korean government plans to revise the income tax law related to the taxation of financial investments by the end of January or early February. However, the upcoming National Assembly elections on April 10th highlight the limited time available for legislative review of the proposed changes.