Democratic Party presidential candidate Lee Jae-myung announced on the 11th that he would suspend the taxation of virtual assets for one year, and it seems that another clash is inevitable following the additional payment of disaster aid to the entire nation with the government.
Candidate Lee made his first small pledge through Facebook this morning, and the National Assembly decided to apply taxation on virtual asset income from January 1, 2022, but the important thing is not the tax decision, but ‘preparation’.” The tax on virtual assets will be delayed by one year until 2023.”
In addition, regarding the currently announced increase of the 2.5 million won deduction limit for virtual asset transfer gains, he said, “Some people raise the question whether it is too low and reasonable. I think a significant increase is necessary.”
Candidate Lee then claimed to be a virtual asset evangelist by attending the ‘Youth Talking About Virtual Assets’ event held at the National Assembly Hall in the morning. He said, “We are discussing in-depth that a kind of virtual asset market will be formed when all the people trade and provide virtual assets to all citizens using profits from large-scale land development and real estate development as an underlying asset.”
Candidate Lee’s move is interpreted to be aimed at young people who are considered to be the major investors in virtual assets. In line with Lee’s remarks, the Democratic Party is also discussing the adoption of a one-year deferral of virtual asset taxation as a de facto party argument.
However, since this is an argument that is in direct conflict with the positions of the Ministry of Strategy and Finance and the tax authorities to impose a tax on virtual assets from next year, it is expected to be controversial again following the payment of national disaster relief funds.
Hong Nam-ki, Deputy Prime Minister of Economy and Minister of Strategy and Finance, directly opposed the claim to defer taxation on virtual assets the day before (10th), saying, “It is not right to force the government to defer (taxation) while acknowledging it on its own.” all.
This is a point of reference to the fact that, as the ruling and opposition parties dealt with the amendment of the Specific Financial Information Act last year, from January next year, income from virtual asset transactions will be treated as other income and a 20% tax on transfer gains will be levied on annual income of 2.5 million won or more.
Regarding the taxation of virtual assets, Deputy Prime Minister Hong said, “It is not that the government is forcibly (taxing), but last year the National Assembly passed a law through an agreement between the ruling and opposition parties. Consistency is undermined. Taxing where there is income is a very natural thing to do, but the government keeps reporting it…”
He continued, “If the ruling and opposition parties agree to pass the law and defer (taxation), the government is not in favor of it (though it will accept it). I wish it would be taxed as it is.”
Earlier, at a plenary meeting of the National Assembly’s Planning and Finance Committee on the 8th, he said, “If taxation is deferred, the law needs to be amended. The ruling and opposition parties agreed that taxation is ready, but forcing people to agree to the deferral is not a bit far-fetched,” he said.
