South Korea plans to introduce 20% tax on cryptocurrency

South Korea introduces 20% tax on crypto profits

South Korean government plans levy a twenty percent tax on all income from cryptocurrency transactions.

The country’s Ministry of Economy and Finance recently instructed the tax office to review plans related to taxing digital assets..

South Korea plans to introduce 20% tax on cryptocurrency

Government sources told local newspaper Pulse that a final decision has not yet been made, but it is likely that profits from cryptocurrency trading will be considered other income, not capital transfer income..

The planned legislative changes will allow the South Korean tax service to immediately tax profits from digital asset trading without asking exchanges for information and calculating a fair market price for cryptocurrencies..

The government has been discussing taxation of digital assets for over a month.  The National Tax Service of South Korea has already begun to take into account the income received by foreigners from cryptocurrency trading, like others and collect taxes indirectly through trading platforms.

At the same time, in addition to the recent transactions of non-residents, the inspectors also take into account the operations of past years, therefore they expose huge additional invoices to the exchanges. One notable example is Bithumb, which received a $ 69.5 tax claim. for incorrect withholding of income tax from foreign clients before January 2018.

text: Ivan Malichenko, photo: Shutterstock

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