The legislature of the opposition People’s Power Party in South Korea has prepared a new challenge for the planned crypto tax law. cryptocurrency
According to The Korea Herald, opposition lawmakers are in favor of a one-year extension from the start of crypto taxation in the country.
As Cointelegraph previously reported, the South Korean crypto tax system will impose a 20% tax on crypto income over 2.5 million won (US $ 2,100), which will come into effect in 2022.
In addition to the one-year delay, lawmakers are also pushing for tiered taxation of cryptocurrencies in line with the financial investment tax system, which is due to be introduced in 2023.
Under the bill, instead of the government-set fixed interest rate of 20% on profits over $ 2,100, the legislature proposed 20% on profits between 50 and 300 million won (42,000 to 251,000 US dollars), and 25% on profits 300 million won.
Regarding the need to relieve crypto investors, MP Cho Myoung-hee argued that a tax system for cryptocurrencies should be in line with the country’s financial investment tax.
Related: South Korean Legislator: Delay in Crypto Tax Law Is “Inevitable”
The People’s Party contesting the crypto tax law comes after a similar action by lawmakers of the ruling Democratic Party in September.
However, an agreement between the legislature and the country’s finance minister is said to have paid for all plans to delay the entry into force of the crypto tax law.
South Korea’s cryptocurrency tax system is one of many stringent regulations the government has recently enacted that could shape the country’s cryptocurrency market in the future.
In September, mandatory licensing requirements for South Korean crypto exchanges went into effect, with several smaller platforms having to close.