TechFlow news, on November 20, according to The Block citing South Korean media Seoul Shinmun, South Korea's ruling Democratic Party plans to implement its cryptocurrency income tax policy starting January 1, 2025, as originally scheduled. Under the new policy, a 20% tax rate (22% including local taxes) will be imposed on cryptocurrency gains exceeding the tax-free threshold.
The party is planning to significantly raise the tax-free threshold from 2.5 million won (approximately $1,795) to 50 million won (approximately $35,919). Considering the volatility of cryptocurrency markets, the new policy will allow taxpayers to use a certain percentage of the sales price as the taxable basis when they are unable to provide accurate purchase records. The amendment will be submitted for a vote at the National Assembly's tax committee on November 25.
