Virtual Asset Taxation Delayed as Ruling Party Considers Further Respite for Investors

IconCryptoNewsTerminal Staff14 Jul, 2024

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Virtual Asset Taxation Delayed as Ruling Party Considers Further Respite for Investors

Politicians in South Korea are considering delaying the implementation of a new tax on virtual asset investment income, due to concerns over the lack of a comprehensive taxation system. The Ministry of Economy and Finance is reportedly considering including a provision in the tax revision bill, which is expected to be announced later this month, that would delay the taxation of virtual assets. The Chairman of the National Assembly's Planning and Finance Committee, Song Eon-seok, has also proposed a revision to the Income Tax Act that would delay the implementation of the tax on virtual asset income for three years, until January 1, 2028. Song explained that “If income tax is imposed on virtual assets, which are high-risk assets with a greater potential for loss than stocks, most investors will leave the market.” Originally, the tax was scheduled to be imposed on virtual asset income starting on January 1, 2023, at a rate of 20% (22% including local taxes) on amounts exceeding the basic deduction of 2.5 million won.

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