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People Power Party Introduces Bill to Scrap Digital-Asset Taxation
Summary
- The People Power Party said it introduced a partial amendment to the Income Tax Act centered on scrapping digital-asset taxation scheduled to take effect next year.
- It said the bill aims to address fairness concerns stemming from differences in the tax regime between stocks and digital assets.
- It said the current Income Tax Act classifies income from the transfer or lending of digital assets as other income, taxing amounts exceeding an annual 2.5 million won deduction at a 22% rate, and that the measure is slated to take effect on Jan. 1, 2027.
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The People Power Party has introduced legislation to abolish taxation on digital assets, which is slated to take effect next year.
According to the industry on the 19th, the party prepared a partial amendment to the Income Tax Act centered on scrapping digital-asset taxation, with floor leader Song Eon-seok sponsoring the bill. The move is seen as reflecting concerns over tax equity across asset classes raised after the abolition of the financial investment income tax.
The bill is intended to narrow differences in the tax regime between stocks and digital assets. Currently, individual investors do not pay income tax on capital gains from stock trades, while separate taxation is scheduled for digital assets, fueling an ongoing debate over fairness.
Meanwhile, under the current Income Tax Act, income from the transfer or lending of digital assets is classified as other income, and amounts exceeding an annual deduction of 2.5 million won are taxed at a 22% rate. The tax is scheduled to take effect on Jan. 1, 2027.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
