[Blockchain Today Correspondent Han Ji-hye] With the taxation of virtual assets scheduled to be enforced from January 1 of next year, the Democratic Party of Korea announced that it is considering a plan to defer the taxation period for virtual assets with the government.
At a press conference held at the National Assembly on the morning of the 2nd, Park Wan-joo, chairman of the Democratic Party’s policy committee, said, “It is true that the party is considering delaying the taxation of virtual assets.” “We will start discussing the official direction of the promotion soon at the party level or standing committee level,” he said.
Earlier, from January next year, the government decided to treat the income from virtual asset transactions as other income and impose a 20% tax on the transfer gains if the annual income exceeds 2.5 million won. However, according to the enactment of the Business Rights Act for the institutionalization of virtual assets, the nature of income from virtual asset transactions has changed, and it has been argued that the taxation period should be delayed.
Kim Byung-wook, a member of the Democratic Party of Korea, who is a secretary of the ruling party on the National Assembly’s Political Affairs Committee, held a press conference at the National Assembly Communication Hall on the same day and argued that the taxation period on virtual assets should be deferred for one year. The plan is to start taxing virtual assets in line with the year 2023 (tax-free up to 50 million won per year) when the taxation of financial investment income begins.
He said, “I’m here today to criticize the Ministry of Strategy and Finance and the National Tax Service, which adhere to the principles established once, while ignoring the various voices of the field and experts.” This act of adhering to only the ‘principles’ is an act that shows the unruly exercise of power that the Ministry of Strategy and Finance and the National Tax Service have taken so far.”
The issue of deferring taxation of virtual assets has been a subject that has been in a tense battle until now. At the general audit of the National Assembly Planning and Finance Committee held on the 20th of last month, Rep. Yoo Kyung-joon of the People’s Power said, “The National Assembly decided to tax virtual assets last year to prevent tax evasion, evasion, and money laundering through virtual assets. “I made a decision after hearing that the tax infrastructure was well equipped at the time,” he said.
However, at that time Hong Nam-ki, Deputy Prime Minister of Economy and Minister of Strategy and Finance, maintained that there is no problem.
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