South Korea plans to introduce 20% cryptocurrency tax

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

MinistryEconomy and Finance of the country ordered his department, which controls this niche, to review the taxation mechanism for crypto companies.

This change reportedly causedSpeculation among Korean experts is that under the new rules, profits derived from cryptocurrency trading will be treated as “other income” rather than “capital gains.”

The Ministry of Finance has yet to finallydetermine the direction, but undoubtedly, income from trading virtual assets will be classified as other income, and not income from the transfer of capital, like real estate,” – Pulse quotes an anonymous official.

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

Reportedly, once the Korean tax authority approves the class to which crypto transactions fall, it will be allowed to immediately tax crypto profits.

Let us remind you that recently the country’s authorities obliged the Bithumb exchange to pay income tax to the budget in the amount of more than $69 million. However, the management of the exchange went to court with the intention of canceling the tax.