Government Scraps Planned Financial Investment Income Tax, Postpones Crypto Taxation

Government Scraps Planned Financial Investment Income Tax, Postpones Crypto Taxation

The government has decided to abolish the Financial Investment Income Tax (FITT), which would have taxed stock investment income over 50 million won. The government has also decided to postpone the introduction of taxation on virtual assets by two years, from next year to 2027. The FITT was initially proposed as part of the government's 2024 tax reform plan. The tax would have applied to income from stocks, bonds, and other financial investments. The government estimated that the FITT would have raised around 2.6 trillion won in tax revenue each year. However, the government has faced strong opposition to the FITT from the public and from businesses. Critics of the tax argued that it would discourage investment and hurt the economy. The government's decision to scrap the FITT is a major victory for opponents of the tax. It is also a sign that the government is listening to the concerns of the public. The government's decision to postpone the introduction of taxation on virtual assets is also a welcome move. The virtual asset market is still in its early stages of development, and it is important to give the market time to mature before imposing taxes. The government's decisions on the FITT and virtual asset taxation are positive steps that will help to promote economic growth and innovation.