South Korea To Tax Crypto Incomes at 20% Rates
South Korea finance officials plan to implement a twenty percent tax on income from cryptocurrencies. Currently, definite laws to tax crypto profits do not exist in the country.
A report by Korea Herald stated that the country’s ministry of economy and finance had authorized the office of income tax to look into a taxation plan, which made people speculate that the authorities could classify gains from crypto trading as other income.
As per the government official, the finance ministry is yet to finalize its plan to tax cryptos, but the authorities may 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 regarding cryptos.
South Korea Imposes Tax on Bithumb Exchange
Last month, the country’s top cryptocurrency exchange, Bithumb, got hit by a massive 80 billion won ($70 million) tax bill by the South Korea National Tax Service. The exchange got ordered to pay the bill because it withheld taxes on trading activities of foreign customers.
Nevertheless, Bithumb responded to the tax bill, calling it groundless. The exchange went 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.