Provisional agreement to defer virtual asset taxation for one year and ease transfer tax… Afternoon Subcommittee

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Kim Young-jin, chairman of the tax subcommittee of the National Assembly’s Planning and Finance Committee, strikes a stick during a meeting of the tax subcommittee of the National Assembly’s Planning and Finance Committee held at the National Assembly in Yeouido, Seoul on the 17th. 2021.11.17

The ruling and opposition parties have tentatively agreed on a bill to delay the taxation of virtual assets from 2022 to January 2023.

According to the ruling and opposition parties on the 29th, the tax subcommittee of the National Assembly’s Planning and Finance Committee held a ‘subcommittee’ on the previous day (28th) and reached an agreement on the amendment of the Income Tax Act to defer taxation of virtual assets.

An official from the opposition party of the committee said, “Through the sub-subcommittee the day before, the opposition and opposition parties agreed on the amendment to defer the taxation of virtual assets for one year.

Previously, the ruling and opposition parties dealt with amendments to the Specific Financial Information Act (Special Act) last year. According to the bill, the government originally decided to treat the income from trading virtual assets as ‘other income’ from January next year and impose a 20% tax on the transfer profit if the annual income exceeds 2.5 million won.

However, the amendment to the Income Tax Act proposed by the so-called so-called includes the content of classifying virtual asset income as ‘financial investment income’ and requiring taxation from 2023.

The ruling and opposition parties also reached a consensus on raising the capital gains tax exemption standard for one householder from 900 million won to 1.2 billion won based on the market price.

However, as for the long-term special deduction for long-term ownership of transfer tax for one homeowner, which is an issue, the opposition and opposition parties are continuing a fierce debate over the ‘time of the counting of one homeowner’.

The Democratic Party’s reform bill recognizes the holding period, which is the standard for the special deduction rate, from the point when a multi-homeowner becomes a single-homeowner. For example, if a single homeowner owns only one house (A) for three years, then purchases another house (B) and holds it for two years, even if he sells house B again, the previous period of holding one house (3 years) is not recognized. am.

On the other hand, the People’s Power opposes the original amendment bill, saying that it is “a provision that unnecessarily strengthens the real estate tax” and immediately insisted that the holding period should be recognized retroactively if a multi-family homeowner becomes a single-homeowner.

An official from the ruling party of the Ministry of Economy and Finance said, “The opposition and opposition parties share the same thoughts about raising the tax exemption standard, but there is a need for further discussion about the timing of the special deduction.”

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