South Korea postpones implementation of new virtual asset tax law to January 2025

BlockBeats news, on July 6, the South Korean government announced that the implementation of the new virtual asset tax law will be postponed to January 2025 to address individual investor tax burdens and regulatory clarification issues. According to the new regulations, from 2025, the law will cover income tax for residents, withholding tax for non-residents, and gift tax on virtual assets.

Crypto investment income is classified as "other income subject to separate taxation" and will not affect personal tax relief policies. For cryptocurrency investors with an annual income of more than 1 million won, personal tax relief remains unchanged.

The extension mainly affects resident personal income tax and withholding tax for non-residents and foreign companies. From January 2025, non-resident individuals and foreign companies will face withholding tax when transferring, exchanging or withdrawing virtual assets on exchanges.