The Korea Blockchain Association (KBA) has urged the South Korean government to postpone plans to start imposing tax on crypto trading profits from October 2021 – stating that it seems unlikely that the required infrastructure will be in place in time.
Per ZDNet Korea, the KBA, which represents exchanges and other blockchain-related firms, suggested pushing back the tax plans until January 2023 – when a new set of capital gains tax rules pertaining to stocks and securities transfers comes into force.
Parliament has already approved the new tax measures, which will be promulgated in October next year unless the government decides to intervene.
The new measures will require crypto exchanges and brokerages to tax at source in many cases, and provide transaction data to regulators at others. But the KBA said that it is unreasonable to expect South Korean crypto exchanges to have the required systems and protocols in place in less than a year’s time – claiming the deadline is “too tight.”
The new law, as it stands, will require that September 2021 trading is taken into account – with taxes payable as of the following month.
The KBA has sent its proposals to the National Assembly’s Planning and Finance Committee, adding that it believes that a stay of execution on the tax measures would benefit the treasury in the long-run, allowing tax revenues from crypto trading to provide meaningful contributions to the future.
The KBA said that its proposal amounts to a “temporary suspension” of the new law.
Earlier this month, the South Korean Deputy Prime Minister and Finance Minister Hong Nam-ki stated that the government was prepared to review tax bands for crypto at a future date.
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Learn more:
The OECD Wants to Tax Your Crypto to Pay for COVID-19 Recovery Efforts
South Korean MP Calls Tax Authority’s Bithumb USD 67m Bill ‘Baseless’
Crypto ‘Is Now Finally Being Taken Seriously’ By Taxman – PwC
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