May 27, 2023

South Korea plans to introduce 20% cryptocurrency tax

South Korea plans to introduce 20% cryptocurrency tax

The South Korean government plans to levy a 20% tax on income from cryptocurrency transactions.

Ministry The country's economy and finance ordered that its department controlling this niche review the taxation mechanism for cryptocurrencies.

This change has reportedly causedthe assumption among Korean experts that under the new rules, profits from cryptocurrency trading will be considered as “other incomes”, and not as “capital gains”.

Ministry of Finance still to be finalizeddetermine the direction, but, of course, the income from trading in virtual assets will relate to other income, and not to income from the transfer of capital, like real estate, ”Pulse quoted an anonymous official as saying.

Note that “other income” in Korea is taxed at 20% to 40% of income, while the remaining 60% is tax deductible.

It is reported that after the Korean tax authority approves the class to which crypto transactions belong, it will be allowed to immediately tax cryptocurrency profits.

Recall, recently, the country's authorities ordered the Bithumb exchange to pay an income tax worth more than $ 69 million to the budget. However, the management of the exchange appealed to the court, with the intention to annul the tax.