The South Korean government and ruling party are considering delaying the taxation of cryptocurrency investment profits from January 2025 to January 2028. The Ministry of Finance said a final decision has not been made yet and is expected will announce tax law amendments later this month. Cryptocurrency income tax has been postponed twice before.
In a context where financial investment tax deferrals have become a reality, taxing Bitcoin is considered unfair. The government explains that the inadequate preparation system is the main reason for this delay.
Some opinions say that tax policies are being overly influenced by the opinions of taxpayers. According to a Financial Services Commission document published in May, the number of domestic cryptocurrency investors reached 6.45 million at the end of last year, of which 30-year-olds accounted for 1.89 million. and people aged 40 account for 1.86 million people. These are the ages that have great influence in society, causing politicians to consider.
The tax law related to cryptocurrency profits was passed under the government of former president Moon Jae-in and is expected to apply from October 2021. However, due to the presidential election schedule next year , the application was postponed to January 2023, then postponed again by the current President Yoon Suk-yeol government to January 2025. The main reason for each postponement was concern about the burden for cryptocurrency investors and the chaos in the market.
If the tax is further delayed until 2028, this will be the third time and the total delay will be more than six years. Some critics argue that tax policy is being unduly influenced by the opinions of taxpayers.
Some opinions say that the system and regulations are not complete enough to carry out taxation smoothly. A ruling party official said more detailed regulations are needed to specifically classify and define cryptocurrencies and related industries.
However, there is also an objection that there have been three years to prepare for the tax and further delay only justifies the government's lack of preparation.
Continuous tax delay can cause the principle "if there is income, there is tax" to be shaken. Some opinions say that the appropriate time to implement the tax is early next year, before major elections take place, such as local elections in 2026.
The government is expected to announce tax law amendments later this month, which will take a final decision on the issue. Deputy Prime Minister - Minister of Finance Choi Sang-mok said that he is still considering and will announce when there is an official decision. The Democratic Party will also give a clear stance after an announcement from the government.
Source: https://tapchibitcoin.io/han-quoc-xem-xet-tri-hoan-thue-dau-tu-tien-dien-tu-den-nam-2028.html