South Korea postpones new crypto tax regime

The South Korean government has officially postponed a new tax regime on cryptocurrency gains until 2022, according to Cointelegraph, which cited a Yonhap report.

The planning and finance committee of South Korea’s national assembly passed amendments to the country’s tax laws on December 1 wherein a new cryptocurrency tax regime will come into effect in January 2022.

On November 25, the legislature suggested delaying the adoption of a cryptocurrency income tax rule until January 1, 2022 instead of October 2021.

The decision will give local crypto businesses more time to adapt to new tax laws. The newly passed amendments stipulate that investors in South Korea pay a 20% tax rate on crypto trading gains above 2.5 million won ($2,260) per year. Korean authorities first finalized the tax rate in July 2020.

American taxpayers

Meanwhile, Forbes reports that for the 2020 tax year, Coinbase is planning to issue a new tax form (1099-MISC) and abandon the Form 1099-K which created a tax nightmare for many American taxpayers.