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South Korea Discussing The Possibility To Apply 20% Tax On Crypto-enabled Transactions

By Chris Torres | January 29, 2020

The Ministry of Economy and Finance Of South Korea has reportedly been discussing the possibility of introducing a new income tax, 20% specifically, on any crypto-enabled transactions. 

Particularly, the governmental department has tasked its income division with researching ways to improve the cryptocurrency taxation. 

According to an anonymous source, although the plan is yet to be  authorized for execution, the initiative of imposing a 20% tax on crypto-enabled transactions is a highly possible development. 

The news regarding the tax imposing rate has been in line with numerous reports published in January, claiming South Korea is working to come up with a tax regime for profits generated from trading digital coins.

A few believed that the South Korean authorities will redefine the revenue secured via cryptocurrencies trading as “other income” – with gains made from lectures, lottery purchases and prizes also fall into this category – and not capital gains. 

A well-established regulatory scheme for crypto taxation will benefit South Korea greatly at the moment. This matter has grown more serious, as towards the end of December last year, crypto exchange heavyweight Bithump revealed that it is considering taking administrative  legal actions, concerning an $68.9 million tax bill, which seemed to not having any legal foundation. 

Various reports have also claimed that Bithumb is taking a step further, taking tax departments to court to handle the situation.

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