Korea's Ruling Party Proposes Two-Year Delay for Virtual Asset Taxation

South Korea's ruling party, the People Power Party (PPP), has proposed an additional bill to delay virtual asset investment income taxation from January 1, 2027 to January 1, 2029. The proposal comes as the government and ruling party maintain their position to implement the tax in earnest from next year.

Petty MP Kim Sang-hoon plans to introduce a partial amendment to the Income Tax Act, which would delay virtual asset investment income taxation by two years. This is not the first time the PPP has proposed delaying virtual asset taxation, with other lawmakers introducing bills ranging from full repeal to three-year delays.

Kim's proposal takes into account the global Crypto-Asset Reporting Framework (CARF), an intergovernmental hotline for sharing virtual asset transaction information. South Korea plans to apply CARF starting next year, but the United States will adopt it in 2029.