The Democratic Party of Korea has decided to finalize its position on whether to delay the virtual asset tax by the end of this year. However, with the party's approval rating struggling, the possibility of yet another postponement has been raised.
Party leader Kim Min-seok said the issue needed to be resolved this year, appearing on the Democratic Party's YouTube channel Minti 07 on Wednesday. "We need to wrap this up this year," he said, signaling the need for a decision on virtual asset taxation before year's end.
Kim said he had proposed to Deputy Prime Minister and Finance Minister Lee Hyeong-il, who visited the National Assembly on Wednesday, that they conduct "a final review and reach a conclusion." He said it was time to begin focused discussions on "whether to proceed with the virtual asset tax as planned or pursue some form of reform to the system."
The virtual asset tax was introduced through an amendment to the income tax law in 2020. It has been delayed three times and is now scheduled to take effect in January next year.
Under the tax, a combined rate of 22 percent — covering other income tax and local income tax — would apply to annual income from the transfer or lending of virtual assets, after a basic deduction of 2.5 million won ($1,890).
The government is preparing administrative procedures ahead of the planned January implementation. At a national audit session of the National Assembly's Finance Committee on Wednesday, Deputy Prime Minister Lee said he would "gather all opinions from the industry and the National Assembly and make a judgment after careful deliberation."
klee@heraldcorp.com
