The main opposition party in South Korea has proposed to withdraw the planned crypto tax set to be implemented in 2027, citing issues of fairness, double taxation, and enforcement difficulties. This proposal could lead to conflicts with the tax authorities, which have begun establishing systems to implement the crypto tax next year, including a transaction analysis platform aimed at tracking digital asset activities.
The opposition party pointed out three main issues with the current framework: fairness, double taxation, and enforcement challenges. According to eDaily, the party believes that most retail stock investors do not need to pay income tax on gains until they reach the threshold of major shareholders, while cryptocurrency investors face comprehensive taxation.
Additionally, the opposition party mentioned that since crypto assets are considered goods under the value-added tax framework, imposing income tax could lead to double taxation on crypto assets. The party also highlighted enforcement challenges, stating that authorities may encounter difficulties in determining the acquisition costs of non-resident foreign investors trading on overseas platforms.
This proposal comes as the tax authorities prepare to deploy enforcement tools to implement the upcoming crypto tax.