The South Korean National Assembly Research Service (NARS) announced that a tax of 20% will be imposed on all cryptocurrency gains from 2023.
According to the NARS Current Issues and Analysis report, the tax will be levied on all crypto transactions with gains above 2.5 million won (US $1,942.20). This amount contradicts the new President Yoon Suk-yeol’s election campaign promise to raise the limit to 50 million won.
The report classifies digital asset gains as financial investment income and allows deduction of loss carryover.
The report also states that the taxation of crypto assets will start from January 1, 2023, instead of 2025 as suggested by South Korea’s deputy prime minister and finance minister nominee Choo Kyung-ho in early May.
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Initially the tax policy was supposed to be implemented from January 2022, however due to lack of investor protection measures the policy was considered premature and delayed a year.
