Bae Jun-young, a lawmaker from the People Power Party and the opposition's representative on the National Assembly's Finance and Economy Committee, urged the Democratic Party on October 31 to quickly decide on whether to delay the cryptocurrency tax set to take effect in January 2024. He argued that inadequate preparations for tracking income from overseas transactions and establishing a taxation system for exchanges could place a burden on domestic investors.
In a statement, Bae noted, "While cryptocurrency taxation is set to begin on January 1, 2024, issues of tax equity and investor protection remain unresolved. Given that young people and small investors participate in this market, any loopholes in taxation should not become a burden for them."
He highlighted the issue of tax equity between domestic and foreign exchanges, stating, "Domestic exchanges submit transaction records to the National Tax Service, but it is difficult to track income from foreign exchanges or peer-to-peer transactions, meaning only diligent domestic investors will bear the tax burden."
Bae also pointed out the problem of not being able to deduct losses from the previous year against profits in the following year. He explained, "If someone loses 10 million won this year and earns 5 million won next year, they will still be taxed on the 5 million won earned next year."
Concerns were also raised about the insufficient preparation time for implementing the tax. Bae remarked, "Although the taxation system was established in 2020 and has been delayed three times, issues regarding the acquisition of overseas transaction information and reporting support persist. During the National Assembly audit, industry experts indicated that even after the National Tax Service's guidelines are finalized, exchanges will need at least 6 to 9 months to establish their taxation systems."
Bae called on the Democratic Party to engage in the review of related legislation. He stated, "The People Power Party has proposed bills to abolish the tax and to delay its implementation, but the Democratic Party has been passive. As the opposition representative on the Finance and Economy Committee, I suggested presenting the relevant bills to the tax subcommittee on November 2, but we have yet to receive a response."
He urged, "Respond immediately to the proposal and reach a conclusion on the tax delay before implementation."
* This article has been translated by AI.
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