South Korea’s finance department announced a new rule yesterday that imposes a 20% capital gains tax on cryptocurrency transaction earnings from 2022. However, cryptocurrency investors are entitled to tax deductions for expenses incurred during mining.
The country’s Ministry of Economy and Finance announced a 20% tax on cryptocurrency transaction earnings in excess of 2.5 million won (approximately $ 2,230) as of January 1, 2022. However, it was also stated that investors can reduce costs from mining activities.
According to the ministry, the new tax will be applied to gains or losses occurring next year, so increasing crypto prices from 2021 will not affect traders much. A recent survey in Seoul showed that almost 54% of South Koreans prefer to tax their cryptocurrency earnings. The survey also showed that the younger generation is against taxing their digital currency activities.
As Forkast.News reported, some find the plan biased and unfair and go so far as to sign petitions demanding the resignation of state officials. South Korea plans to introduce new regulations on cryptocurrency trading and taxation on profits, but the outbreak of the global Covid-19 outbreak is said to delay implementation.