Tax-free profits from cryptocurrencies until January 1, 2025
A very gratifying & positive news for all South Koreans: the “Tax Reform Law 2022”, which was supposed to come into force on January 1, 2023, has now been suspended by the government, as a local news agency in South Korea reported. In plain language, this means that profits from investments in virtual assets such as cryptocurrencies would remain tax-free for residents of South Korea for another full two years from January 1, 2023. Accordingly, the law should enter into force on January 1, 2025.
The National Assembly of South Korea already passed the Tax Reform law on December 2, 2021. Additional measures were included in the law on three different dates in the same month, and the law should come into force as early as January 1, 2022.
However, in mid-January of this year, the authorities considered it absolutely necessary to postpone the adoption of the law for another year after it was originally supposed to enter into force. Consequently, investors instead expected taxes on crypto profits from January 1, 2023.
With the recent reports of another postponement, investors have two more years for tax-free investments in cryptocurrencies.