Lee Hyoung-il Says Crypto Tax Guidelines to Be Announced This Year, Backs ‘Other Income’ Classification

• Lee said detailed tax guidelines related to the planned Jan. 1 launch of virtual asset taxation next year will be announced through a National Tax Service notice before year-end.
• Lee said the current tax system, which classifies virtual asset income as other income, is appropriate because it allows taxpayer-friendly treatment such as a basic deduction and a single tax rate.
• Lee said virtual asset taxation would help improve tax fairness across asset classes compared with stocks and other assets, and that any introduction of the financial investment income tax should be reviewed only after financial markets have stabilized.

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Lee Hyoung-il, South Korea’s nominee for deputy prime minister and finance minister, said detailed tax guidelines for virtual assets will be announced before year-end ahead of the planned Jan. 1 implementation of crypto taxation.

The Kyunghyang Shinmun reported on Sept. 13 that, in written responses submitted to the National Assembly ahead of his Sept. 15 confirmation hearing, Lee said the specific standards would be published in a National Tax Service notice within the year so taxpayers would face no difficulty in filing.

Lee also said the current tax framework, which classifies income from virtual assets as other income, is appropriate. He said that classification would allow a taxpayer-friendly system, including a basic deduction and a single tax rate, while reducing compliance costs under comprehensive income taxation.

He also said taxation of virtual assets would help improve fairness across asset classes, noting that capital gains and transaction taxes already apply to major shareholders, overseas stocks and unlisted shares.

On whether to introduce a capital gains tax including the financial investment income tax, Lee said the matter should be reviewed only after financial markets are sufficiently stable. On inheritance and gift taxes, he said further public input and broader social discussion are needed, as views remain divided between easing the tax burden and preserving tax fairness.

Source: en.bloomingbit.io