Following the government, the ruling and opposition parties reach a tentative agreement on ‘2-year postponement of virtual asset taxation’
The tax subcommittee reached a consensus… Differences of opinion on raising basic deduction and obligation to submit transaction data
Quick Look
- While the government decided to postpone virtual asset income taxation, which was scheduled to be implemented next year, for two years, the ruling and opposition parties in the National Assembly tentatively agreed to pass a bill reflecting related contents.
- However, differences of opinion continued regarding the increase in basic deduction and the obligation to submit transaction data.
AI-generated summary
Why It Matters
Taxation on virtual asset income has been postponed several times for reasons such as infrastructure maintenance and the establishment of investor protection systems.
(Seoul = Yonhap News) Reporter Jaeha Park = While the government decided to postpone virtual asset income taxation, which was scheduled to be implemented from next year, for two years, the ruling and opposition parties also tentatively agreed to pass the bill by reflecting related details.
Rep. Ki-hyung Oh of the Democratic Party of Korea, a member of the ruling party, met with reporters after the end of the tax subcommittee of the National Assembly's Finance and Economic Planning Committee on the 11th and said, "There was a consensus on delaying the taxation of virtual assets."
He said, “We are discussing some procedural matters,” and “The government said it would postpone (taxation) for two years, and there was no significant difference of opinion between the ruling and opposition parties.”
People Power Party lawmaker Bae Jun-young, the opposition party's secretary, also said, "The government must prepare responsibly as it postpones in the future," and added, "At the National Assembly level, we will closely monitor whether the government can work hard and how preparations are being made and guide together."
Virtual asset income taxation was originally scheduled to be implemented in January 2022, but was postponed once in 2023 for reasons such as tax infrastructure improvement and investor protection system establishment, and then twice further to 2025 and 2027.
However, the Income Tax Act amendment proposed to the Tax Subcommittee, which aims to postpone taxation of virtual assets for two years, was not passed.
The government expressed opposition to raising the basic deduction for virtual asset taxation, and differences of opinion among lawmakers continue over regulations requiring exchanges to submit transaction data starting next year.
Regarding this, Rep. Oh explained, “The final decision will be made on the last day of the tax subcommittee,” and added, “It is safe to say that (taxation) has been delayed for two years as of now.”
What to Watch
AI outlook — possibilities, not facts
Final decision on the Income Tax Act amendment is expected on the last day of the Tax Subcommittee.
Likely · Within days
Open Questions
- What is the final agreement on raising the basic deduction and the obligation to submit transaction data?
- When will the final decision on the Income Tax Act amendment be made?
