South Korea plans to tax income from cryptocurrencies

S. Korea to levy 20% tax on annual cryptocurrency profits exceeding US$ 2,260 from 2022

South Korea plans to tax income from cryptocurrencies

South Korean government discusses taxation of citizens’ income from cryptocurrency transactions.

The country’s Ministry of Economy and Finance wants this mechanism to be regulated in 2020 year. The government is already discussing this topic and plans to prepare a corresponding bill in the next six months..

South Korean media report that authorities want to levy capital gains tax on cryptocurrencies regardless of legislative amendments, and are now forming an accurate definition virtual currencies, to decide which group of assets they are closer to in order to apply the relevant taxation rules. The government also intends to collect and study the trade data of crypto exchanges in order to on their basis levy taxes.

The ground for the future system began to be prepared in advance. In November, the bill regulating the activities of cryptocurrency exchanges was amended, according to which the heads of unregistered platforms face imprisonment.

text: Ivan Malichenko, photo: depositphoto