On November 29, the representative of the Korean Legislature Congress Tax Subcommittee has reached a two-party agreement. I passed a amendment that may postpone encrypted currency tax. If the amendment is passed on the Parliament meeting on December 2, taxation will begin on January 1, 2023, rather than the previous plan for 2022. This may become a big victory in the local encryption of the monetary industry.
It has been advocating the deferred democrat legislators condemnation that there is a defect in the information collection procedures that the State Taxation Bureau (NTS) will implement. One of the programs is that encrypted assets in a private wallet that cannot be proved the acquisition price, assuming that its cost is 0 won ($ 0).
This means that this will bring huge tax burden to the long-term holders who have a coin in a private wallet before the effectiveness of tax legislation. They will be effectively levied on all asset prices, not just the benefits they are.
The Chairman of the Tax Subcommittee, also pointed out that the government requested citizens to encrypt the tax payment tax, and the government has not been formally defined by the encrypted currency or virtual asset. In his view, “On the basis of not clear, how to legally define the encrypted currency in our system, there is inconsistent taxation system … but only in Korea, taxation is prior to supervision.”
Supporters who are represented by the Finance Minister Huongnam-Ki believe that the tax system should be equitable so that those who have gotten their income in the encrypted currency transaction contribute their fair share. In fact, in the past few months, Hongnam-K Minister has repeatedly vetoed the debate on encrypted currency taxes at the public meeting of the Congress.
The debate on tax lazy situation is reached, leading to information between citizens and legislators. In the whole 2021, news reports on this tax of this tax have been regularly released.
Recently, on November 23rd, the Financial Services Committee (FSC) overthrew their opinions about NFT not taxation, and said they are working hard to treat it as a tradable encrypted currency.