March 29, 2023

South Korea Introduces 20% Cryptocurrency Profit Tax

South Korea Introduces 20% Cryptocurrency Profit Tax

South Korean Ministry of Economy and Finance is considering introducing 20% ​​tax on income from operations with cryptocurrencies.

According to local news publicationKorea Times dated January 20, the ministry ordered its revenue department to consider cryptocurrency taxation. And although the tax plan has not yet been formally adopted, according to the source, the government can introduce a 20% tax on profits from crypto trading.

Recall that at the end of last year, there were reports that South Korea was developing a tax system for cryptocurrency traders. At that time, a representative of the ministry noted:

Relevant discussions are already underway. The bill will be prepared for the first half of next year.

And although at the moment it is not known exactly howa tax system will work, some experts suggest that the government can classify cryptocurrency profits as “other income” rather than capital gains. Note that the category “other income” also includes profits from winning the lottery or in various competitions.

According to the materials