The era of virtual assets that have just risen...What is the issue of taxation controversy? [Anchor Report]

Since Trump's election, virtual asset prices have soared, and investment is also hot in Korea.

There is a lot of controversy over the taxation of virtual assets, which is scheduled to be implemented next year.

Let's take a look at what issues there are.

The key to virtual asset taxation is to apply a 20% tax rate if you generate more than 2.5 million won per year.

It was originally scheduled to be implemented on January 1, 2022, but it was postponed twice due to the need to establish a taxation infrastructure and establish an investor protection system.

That's January of next year.

The government and the ruling party are still insisting on postponing two years, saying there is still a lot to build and supplement, but the Democratic Party of Korea says it should push ahead as scheduled for tax principles.

At the same time, a plan was proposed to expand the deduction limit from 2.5 million won to 50 million won.

But investors are protesting.

The financial investment income tax on stocks has been agreed to be abolished, but it raises the issue of equity, asking why are you taxing virtual assets?

What about other countries?

Details such as coverage and deduction limits vary, but
Major countries such as the United States, the United Kingdom, and Japan already classify virtual assets as assets and tax them.

There was a consensus early on that we should also tax, but the problem is when it will be implemented.

It's pointed out that it's impossible right now.

This is because systems such as legalization such as income classification and tracking the movement of virtual assets are still insufficient.

Above all, cooperation from virtual asset exchanges is needed to secure data necessary for taxation, and there are concerns that foreign companies will cooperate well.

Another reason for the premature taxation theory is that it is not easy to track due to the nature of virtual assets, so there is a high possibility of tax avoidance.

[Seok Byung-hoon / Professor of Economics at Ewha Womans University] Because there are many ways to avoid taxes. So people who traded virtual assets through domestic exchanges have to pay taxes, but it is difficult to find out the financial resources if they use overseas exchanges or earn income through personal transactions. Now, this is a situation where the unfairness of taxation cannot be countered. So we have to tax it after all these systems are in place...]

It is pointed out that it is not prepared enough to go against equity with stocks, but
Considering the
tax principle, it's a problem that we can't just postpone it.

Even if it is delayed for another two years due to the government's grace plan, it is already much later than in advanced countries.

Now that the era of virtual assets is in full swing, it seems necessary to complete the system before it is too late.