South Korean lawmaker: 22% crypto tax may lead to capital outflows
2026-08-14 17:13:08
According to CoinMeta, South Korean lawmaker Park Soo-young called on the government to revoke the 22% virtual asset tax that was scheduled to take effect on January 1, 2027, arguing that this policy unfairly targets approximately 13 million crypto users, while the investment tax on domestic stocks has been abolished. On August 13, she criticized this tax plan on the YouTube channel, calling it a punitive measure that could lead to more South Korean capital flowing to overseas crypto markets. Park pointed out that by abolishing the investment tax while retaining a separate tax on virtual assets, the government is essentially telling investors that they may face a "tax bomb" if they do not invest in domestic stocks. Under the current tax law, profits from the transfer or lending of virtual assets are classified as other income, and the portion exceeding 2.5 million Korean won will be taxed at 20%. Combined with a 2% local income tax, the actual tax rate reaches 22%.
Source:Cryptonews
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