South Korea Opposition Party Proposes Abolishing Cryptocurrency Tax in 2027, Plans to Completely Cancel 22% Tax Rate

Gate News reports that on March 19, South Korea's main opposition party proposed a bill to cancel the planned local digital asset tax scheduled for 2027. The bill, initiated by legislator Song Eon-seok, aims to amend the Income Tax Act and fully eliminate taxation on cryptocurrency gains.

Currently, South Korea plans to impose a maximum 22% tax on profits exceeding 2.5 million won (approximately $1,665) from cryptocurrency transactions, including 20% national tax and 2% local tax. This tax was originally scheduled to be implemented in 2022 but has been postponed multiple times due to strong opposition from the industry and investors.