The Democratic Party of Japan agrees to a two-year moratorium on virtual currency taxation... ”Additional systems need to be put in place”

South Korea's Democratic Party of Korea announced on the 1st that it would agree to a government proposal to defer tax on virtual currency investment income for two years, news site News1 reported.
Park Chan-dae, floor leader of the Democratic Party of Korea, held a press conference at the National Assembly on the same day and said, "After deep discussion, we have come to the conclusion that it is time to establish an additional system.
Regarding the opposition within the party to the postponement of virtual currency taxation, the representative said, "I will make another time to talk about it," and added, "The important thing is to make a decision after long deliberation and discussion.
According to the current income tax law, from January next year, the virtual currency income deduction amount of 2.5 million won (about 270,000 yen) will be deducted from the transfer and lending income.
However, when the government announced the tax law reform bill in July, it decided to postpone the start of the tax on virtual currency investment income from January 2025.
The People Power Party also agreed with the government and encouraged the opposition parties to join in. Meanwhile, the Democratic Party of Korea has announced that it will impose a tax on virtual currencies from January next year.
However, the government countered by raising the deduction amount from 2.5 million won (approximately 270,000 yen) to 50 million won (approximately 5.4 million yen).
The ruling and opposition parties held discussions in the Planning and Finance Committee until the 29th of last month, but failed to reach an agreement.
The Democratic Party of Korea agreed to the government's proposal to abolish the financial investment income tax last month. Chairman Lee Jae-myung announced this position on the 4th, saying, "We will abolish the financial investment income tax according to our principles and values.
"It is right to enforce income tax, but the current stock market in South Korea is in a very difficult position, and we have no choice but to take into consideration the position of the 15 million investors who have placed their hopes in the stock market," he said.