South Korea To Start Imposing a 20% Tax on Crypto Incomes
The finance officials of South Korea are planning to implement the collection of a twenty percent tax on income from crypto. At the moment, definite laws to tax crypto profits do not exist in the country.
A report by Korea Herald stated that country’s ministry of economy and finance had authorized the office of income tax to look into a taxation plan for cryptocurrencies. The crypto taxing plan has made people speculate that the authorities could classify gains from crypto trading as other income.
According to a government official, the finance ministry is yet to finalize its plan to tax cryptos, but it is possible for the authorities to impose a 20 percent tax on cryptos. Before this time, reports had it that the country’s government is looking into approaches of other leading nations towards the amendment of its tax laws as regard cryptos.
Last month, the country’s top cryptocurrency exchange, Bithumb, was hit by a huge 80 billion won ($70 million) tax bill by South Korea’s National Tax Service. The exchange was ordered to pay the bill because it withheld taxes on trading activities of foreign customers.
However, Bithumb responded to the tax bill, calling it “groundless.” The exchange has gone to court to challenge the imposed tax. The exchange is also looking forward to developing blockchain in Busan city as it declared the plan to invest about $8 million into the country’s regulation-free zone.
Featured image courtesy of Shutterstock. Source: Cryptopress.