South Korean officials: Government considers 20% tax on cryptocurrency transactions

South Korean officials said on Monday that the country's Ministry of Finance has been considering a 20% tax on cryptocurrency trading income.

Officials said the South Korean Ministry of Economy and Finance has recently ordered its income tax office to review a tax plan for cryptocurrencies. Earlier, the Ministry's Finance and Tax Office had reviewed the plan.

crypto

The move sparked speculation that the government could classify the benefits of cryptocurrency transactions as other benefits rather than capital gains. Other current benefits under Korean tax law include lectures, lottery purchases and winnings.

A government official, who asked not to be named, said the Ministry of Finance has not finalized plans to tax cryptocurrencies.

But the official said the government could impose a 20% tax on cryptocurrencies.

Last November, South Korean tax authorities imposed a withholding tax of 88.3 billion won (about 69.2 million U.S. dollars) on Bithumb.

Vidente, Bithumb Holdings' largest shareholder, said in a regulatory document that the company confirmed the Korean National Tax Service's (NTS) decision to implement withholding tax on foreign customers.

Bithumb Korea, South Korea's largest cryptocurrency exchange, plans to take legal action against withholding taxes.

By law, employers who pay wages, pensions, and other income must withhold income tax and pay it to the government.

The NTS decision means that Bithumb Korea must pay withholding taxes to the government on behalf of its foreign customers, and Bithumb Korea will then recover the money from its overseas customers.

In other words, the definition of cryptocurrency transactions is very important. Once it is defined as other income, Bithumb Korea will need to pay withholding tax, but if it is defined as capital gains, this case may have different results.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Blockchain

Metropolitan Museum of Art in New York to return $550,000 FTX donation

According to Decrypt, the Metropolitan Museum of Art in New York has agreed to return hundreds of thousands of dollar...

Blockchain

The volatility product "Turtle Bunny Card" is available, is the coin derivative a devil or an angel?

On May 30th, Dr. George Cao, founder and CEO of BitMax.io, visited the ChainNode live room and talked to Babbitt edit...

Blockchain

The exchange is robbing the tokens, all of which are behind the interests.

Since 2019, with the launch of the first issue of the currency-raising (IEO), the “project-side tokens have be...

News

Twitter featured: Mancoin network suspected of being stolen 100 million US dollars, the official claims to maintain

01 CoinDesk Media News Lightning Labs released its first desktop application on the Bitcoin blockchain. Lightning Lab...

Blockchain

Thousands of exchange platform license thresholds reach the cloud or 5 platforms enter the Hong Kong Securities Regulatory Commission's sandbox

Source: 21st Century Business Herald Author: Zhou scorching The confrontation between the United States and Iran has ...

Blockchain

Weekly data on the BTC chain: data on the chain began to fall, and the exchange traded frequently

In the past week (10.28-11.03), from the main chain data, the total amount of transactions has increased compared wit...