September 24, 2023

South Korea may introduce a 20% cryptocurrency income tax

The South Korean Ministry of Finance is considering introducing a 20% tax on income from cryptocurrencies.

Korea Herald reports revenue fromcryptocurrencies are equated to “other income”, which is taxed at a rate of 20%. That is, income from cryptocurrencies will be subject to the same tax as, for example, winning the lottery.

“The Ministry of Finance has yet to finallydetermine the direction for taxing the trade in digital assets and equate the income from cryptocurrencies with other income, and not with income from capital gains, ”the representative of the ministry emphasized.

It was previously reported that the South Korean authoritiesbegan the development of new legislation on the taxation of income derived from the circulation of cryptocurrencies. At the same time, although at the moment according to the laws of the country, income from cryptocurrencies should not be taxed, the National Tax Service of South Korea (NTS) accrued $ 69 million in taxes to the cryptocurrency exchange Bithumb. After that, the trading platform sued the NTS with a request to return the unjustly paid taxes.