The Korean government stated on November 11 that even if digital asset income taxation is delayed by 2 years, the tax data submission obligations for virtual asset operators must be enforced early, according to National Assembly Finance and Economy Planning Committee review materials for the 2026 regular session. The government explained that strengthening transaction data analysis and verification capacity is necessary before tax implementation to reduce taxpayer reporting burden and ensure smooth enforcement. This position comes as the government agreed to a 2-year tax delay considering the US digital asset transaction information exchange starting in 2029 and institutional foundation changes from the Digital Asset Act.
Government Cites Verification Capacity as Rationale for Early Data Submission
The government stated in the committee materials that "despite the tax deferral, strengthening transaction data analysis and verification capacity is required to reduce citizens' reporting burden and ensure smooth tax enforcement." The government reviewed opinions proposed by experts, industry, and the National Assembly, and agreed to the 2-year tax deferral considering that digital asset transaction information exchange with the US will occur from 2029 and institutional foundation changes following the Digital Asset Act.
Legislative Proposal Delays Tax to 2029 While Requiring 2027 Data Submission
A proposed Income Tax Act amendment currently before the National Assembly would postpone the digital asset taxation implementation date from January 1, 2027 to January 1, 2029, while enforcing the tax data submission obligations for virtual asset operators from January 1, 2027. Democratic Party member Ahn Do-geol sponsored the bill on the 9th. The Finance and Economy Planning Committee explained that operator tax data submission is necessary for linking and integrated analysis of domestic and international tax data, and for building reporting support systems and verification frameworks.
Committee Recommends No Penalties During Tax Deferral Period
The committee review materials noted that the scope of additional submission materials needed for tax preparation must be specified. The materials added that even if data submission obligations are enforced from 2027, sanctions such as corrective orders and fines for non-submission should not be applied during the tax deferral period.
FAQ
What did the Korean government say about digital asset tax data submission on November 11?
The Korean government stated that even with a 2-year delay of digital asset income taxation, the tax data submission obligations for virtual asset operators must be enforced early to strengthen transaction data analysis and verification capacity before tax implementation.
When would the proposed amendment enforce tax data submission obligations?
The proposed Income Tax Act amendment sponsored by Democratic Party member Ahn Do-geol would enforce tax data submission obligations for virtual asset operators from January 1, 2027, while delaying the actual taxation implementation from January 1, 2027 to January 1, 2029.
