Ruling party, gov't fail to agree on delay of cryptocurrency tax
The cryptocurrency prices are displayed on a screen at the cryptocurrency exchange Bithumb lounge in Seoul, Monday. Yonhap
The ruling Democratic Party of Korea (DPK) and the government failed to reach a decision for a fourth time Wednesday on whether to delay the planned taxation of cryptocurrencies, with the tax set to take effect next year.
The meeting at the National Assembly, attended by DPK lawmakers and finance ministry officials, came as Korea plans to begin taxing virtual assets on Jan. 1.
"We need to discuss several issues regarding taxation, and while some argued for taxation since it has been postponed three times, there were suggestions that a few further improvements should be made," Rep. Oh Gi-hyoung told reporters.
Officials at the meeting agreed on the need to levy tax on virtual assets but raised several concerns, including tax fairness between users of domestic and overseas exchanges, according to the lawmaker.
The DPK will further review the issues before reaching a final decision, he added.
Korea first introduced a taxation scheme on cryptocurrencies in 2020 but its implementation has been postponed three times.
Under the scheme, annual cryptocurrency gains exceeding 2.5 million won ($1,880) will be subject to a 22 percent tax, including local income tax.