Need for “Regulation Before Taxation”
Current system lacks voluntary reporting and payment by investors
Government considering 3-year delay in cryptocurrency taxation,
Chu Kyungho (left), the leader of the People Power Party, and Kang Myung-gu, a member of the People Power Party, attending a ‘Current Issues in Cryptocurrency Taxation’ forum at the National Assembly in Yeouido, Seoul on the 16th. Provided by Kang Myung-gu’s office,
, ‘[Seoul Economy]’,
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, ‘The People Power Party has taken the lead in demanding a delay in the upcoming cryptocurrency taxation due to insufficient preparations. The ruling party, which previously proposed a 3-year delay in cryptocurrency taxation, held a forum to discuss the necessity of delaying cryptocurrency taxation.’,
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, ‘Kang Myung-gu, a member of the People Power Party, emphasized the need for a delay in cryptocurrency taxation during a ‘Current Issues in Cryptocurrency Taxation’ forum held at the National Assembly in Yeouido, Seoul on the 16th, stating, “While taxing income from investments is a principle, considering the current inadequate institutionalization, various side effects that may arise from hasty taxation should be examined.” Kang, who previously served as a Secretary for State Affairs Planning in the President’s Office, is considered to be one of President Yoon Suk-yeol’s close allies.’,
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, ‘According to current income tax laws, from 2025, a tax rate of 22%, including local taxes, will be imposed on cryptocurrency income exceeding 2.5 million won. Therefore, it is argued that system improvements should precede the application of cryptocurrency investment income tax.’,
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, ‘An Sung-hee, a professor of accounting at Catholic University who participated in the forum, pointed out that, regarding the current system where cryptocurrency taxation is carried out through voluntary reporting by investors, “Government authorities need to explore ways to ensure the convenience of reporting and payment, and a system allowing voluntary payment of income tax, similar to ‘Hometax’, should be established before taxation is imposed.” Furthermore, reasons such as the △unclear tax standards and △appropriateness of classifying other income were listed as grounds for the necessity of a delay in cryptocurrency taxation and system improvements.’,
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, ‘The government is considering a 3-year delay in taxing cryptocurrency investment income. Kang confirmed a shared understanding with the government on the need for a delay in cryptocurrency taxation, stating during the forum, “President Yoon also mentioned, ‘Shouldn’t we apply the principle of ‘Regulation Before Taxation’?” Song Eon-seok, a member of the People Power Party and chairman of the National Assembly’s Planning and Finance Committee, previously proposed a bill to delay cryptocurrency income tax for 3 years. As a result, there is a high likelihood that the government’s tax law amendment to be announced next month will include a delay in cryptocurrency taxation.’,
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