Government and Ruling Party Consider Deferring Virtual Asset Investment Income Tax

The government and the ruling party in South Korea are considering postponing the virtual asset investment income tax, set to be implemented next year, due to the lack of a robust taxation system and infrastructure. The Ministry of Strategy and Finance is working to include this deferral in the upcoming tax law amendment. From January 1, a 20% tax on virtual asset income will apply, excluding a 2.5 million won basic deduction. The ruling party, is aggressively pushing for a three-year deferral, aligning with their 22nd general election pledge. The delay is also seen as necessary to establish a sophisticated taxation system and avoid burdening young investors. The tax on gold investment may also be postponed to maintain consistency in financial investment taxation.

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