The South Korean government has been urged by the Korea Blockchain Association (KBA) to suspend orders to impose a tax on crypto trading profits from October 2021 – asserting that it looks doubtful that the needed foundation will be in place in time.
As per a report from ZDNet Korea, the KBA, which incorporates exchanges and other blockchain-related companies, proposed pushing back the tax policies until January 2023 – when a fresh set of capital gains tax rules about stocks and securities transfers stands into force.
Parliament has now confirmed the new tax measures, which will be proclaimed in October next year unless the government chooses to intervene.
The new standards will obligate crypto exchanges and brokerages to tax at source in numerous cases and provide transaction data to regulators at others. Although the KBA said that it is thoughtless to expect South Korean crypto exchanges to have the required systems and protocols in place in less than a year – claiming the deadline is “too tight.”
As it holds, the latest law will expect that September 2021 trading is taken into account – with taxes payable as of the following month.
The KBA has sent its recommendations to the National Assembly’s Planning and Finance Committee, adding 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 stated that its suggestion 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.