TechFlow reports that the South Korean government plans to re-examine its scheduled January 2025 taxation of virtual currency (cryptocurrency). Under the current tax reform proposal, the taxation of virtual currency was set to take effect in January 2025.
However, following the government's recent announcement to abolish the Financial Investment Income Tax (FIIT), the virtual currency taxation plan now requires reassessment. The Director of the Planning and Budget Ministry's Tax Policy Bureau stated, "While the government has clarified its position on abolishing FIIT, the taxation of virtual currency must await discussion in the National Assembly." Moreover, there are ongoing disputes regarding inconsistencies between cryptocurrency taxation and stock taxation.
According to the current Income Tax Act, starting January 1 next year, gains from the transfer or leasing of virtual currency will be classified as other income and subject to taxation.
