South Korea’s National Assembly is set to begin a formal review of competing bills on virtual-asset taxation, with lawmakers weighing whether to postpone the regime again or eliminate it altogether. The measures are due to be discussed at a 2 p.m. meeting of the Tax Subcommittee under the Assembly’s Strategy and Finance Committee.
Seven amendment bills are on the agenda. The debate centers on two main questions: how long any delay should last and whether investors should be allowed to carry forward losses when calculating tax obligations on virtual assets.
Lawmakers present several paths
The proposals span a range of outcomes. Some bills would push back the start of virtual-asset taxation by two years, others by three years, while one proposal would scrap the tax system entirely.
Among Democratic Party lawmakers, Park Min-kyu and Ahn Do-geol each submitted amendments to delay implementation by two years. Ahn’s bill also includes a provision that would allow losses from virtual-asset investments to be carried forward for up to three years for deduction purposes.
Ruling party bills vary on timing and structure
Lawmakers from the People Power Party put forward multiple alternatives. Song Eon-seok proposed abolishing virtual-asset taxation, while Jeong Seong-guk and Kim Jae-seop each proposed a three-year delay.
Kim Sang-hoon submitted a bill for a two-year postponement. Choi Eun-seok’s amendment would also delay taxation by two years, but goes further by setting a five-year loss carryforward period and raising the basic deduction limit.
Government backs deferral, not immediate launch
Despite the differences among the bills, the ruling party, the opposition and the government are currently aligned on one broad point: they favor deferring virtual-asset taxation rather than introducing it immediately.
The government moved to that position after the ruling party requested a delay. It has since decided to pursue a plan that would postpone implementation by two years and allow losses to be carried forward for three years.
What the subcommittee is expected to decide next
The subcommittee’s review is expected to focus not only on whether taxation should be delayed, but also on how gains and losses from virtual-asset investing would be treated if a revised system is adopted.
For now, the confirmed next step is the committee-level discussion of the seven amendments. The key issues before lawmakers are the length of any postponement and whether loss carryforwards should be included, with proposals on that point ranging from three years to five years.
Source: en.bloomingbit.io