Starting January 1, 2022, all profits on cryptos will be subject to a 20% tax in South Korea, local news outlet Korean Herald has reported.
According to the country's Ministry of Economy and Finance, all profits made by both trading and holding cryptocurrencies will be subject to a 20% tax.
However, it should be noted this new tax will only be applicable when profits exceed 2.5 million won (around $2,300), which means that lower amounts will be exempt.
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The country had intended to start applying this new tax already in 2020, however, the pressure from industry participants forced the government to postpone its entry into force several times, even going as far as 2023. However, 2022 has become the new target date.
In addition, cryptos received as part of an inheritance, or those received as gifts, will also have to be declared and will be subject to the same 20% tax.