South Korea has postponed the implementation of the new virtual asset tax law to January 2025

According to ChainCatcher news, as reported by Coin Edition, the South Korean government has announced that the implementation of the new virtual asset tax law will be postponed until January 2025 to address the tax burden on individual investors and clarify regulations.

Under the new regulations, starting in 2025, the law will cover income tax for residents, withholding tax for non-residents, and gift tax on virtual assets. Cryptocurrency investment income will be classified as "other income subject to separate taxation," which will not affect personal tax deduction policies. For cryptocurrency investors with an annual income exceeding 1 million won, personal tax deductions will remain unchanged.

This postponement primarily affects individual income tax for residents and withholding tax for non-residents and foreign companies. Starting from January 2025, non-resident individuals and foreign companies will face withholding tax when transferring, exchanging, or withdrawing virtual assets on exchanges. Current laws do not clarify whether South Korean exchanges must withhold tax before the new amendment takes effect.

Investors have welcomed this postponement, believing that it will help the South Korean government and the industry better adjust for the smooth implementation of the new tax system.