Summary
- The People Power Party plans to introduce an additional partial amendment to the Income Tax Act that would delay the start of taxation on investment income from virtual assets by two years, from January 2027 to January 2029.
- The government is maintaining its position that it will fully implement virtual asset taxation from January 2027 as scheduled and make changes if necessary.
- With the financial investment income tax abolished, critics say pressing ahead with virtual asset taxation goes against tax equity, while a public petition calling for the tax’s abolition has drawn support from more than 58,000 people.
Forecast Trend Report by Period
South Korea’s ruling People Power Party is planning to introduce another bill to delay taxation on virtual assets, or cryptocurrencies.
Edaily reported on August 13 that People Power Party lawmaker Kim Sang-hoon plans as early as this month to propose an amendment to the Income Tax Act that would postpone taxation on crypto investment income by two years, moving the start date from January 2027 to January 2029. The bill is currently under review by the National Assembly Secretariat’s legislative office.
It would be the second bill from the People Power Party seeking to delay crypto taxation. On August 10, party lawmaker Jeong Seong-guk proposed a separate amendment to the Income Tax Act that would push back the start of taxes on crypto investment income by three years, from January 2027 to January 2030.
The government, however, has maintained that it will press ahead with crypto taxation from January 2027 as scheduled. Deputy Prime Minister Koo Yun-cheol, who also serves as finance minister, told the National Assembly’s planning and finance committee in a work report last month that the government would proceed as planned next year. He added that authorities would make adjustments if needed after implementation begins.
The National Tax Service has also recently set up a new digital assets division in preparation for next year’s rollout of crypto taxation. It plans to issue related guidelines as early as October.
Opposition over tax fairness is also growing. Critics say enforcing crypto taxation after the financial investment income tax on stock investment gains and similar income was scrapped would violate tax equity. A public petition calling for the abolition of the crypto tax has won support from more than 58,000 people and has been referred to the National Assembly.
