Copy link
Increase text size
Decrease text size
Link copied

South Korea plans to impose 20% income tax on cryptocurrencies: Report

Mon, 20 Jan 2020, 13:56 pm UTC

The finance ministry of South Korea is mulling to impose a 20 percent income tax on cryptocurrency transactions, the officials announced on Monday, The Korea Times reported.

The Ministry of Economy and Finance has reportedly ordered its income tax department to review a cryptocurrency taxation plan. This has led to speculations that the government may no longer categorize cryptocurrency trading as capital gains but as other income, the report said.

Under the country’s tax law, once labeled as other income, the Korean tax bureau will have the power to immediately impose a tax on gains from virtual asset trading. On the other hand, if it is labeled as capital gains, the government will still need to get the information from cryptocurrency exchanges and the tax will be calculated based on the fair market price, Pulse reported.

Other income includes honorarium income and prizes from winnings like lottery, etc. It is subject to a 20 percent tax on 40 percent total other income with the remaining 60 percent being tax-deductible.

An anonymous government official also revealed that the finance ministry’s plan for cryptocurrencies tax has not been finalized yet.

“The finance ministry is yet to finalize its direction but it surely has become more likely for the income from virtual asset trading to be labeled as other income, not as gains from transfer of capitals like real estate properties,” the source said.

Last November, the country’s tax agency imposed 80.3 billion won ($69.2 million) in withholding tax on cryptocurrency exchange Bithumb. The exchange has filed a complaint with the tax tribunal, arguing that the tax imposed by the National Tax Service (NTS) was groundless.

Meanwhile, cryptocurrency exchange Binance is planning to launch a support center in South Korea after investing in fintech firm BxB.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $12,931.30 (-1.19%)
  • Ethereum (ETH) $409.53 (-1.86%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $270.10 (+0.38%)
  • Chainlink (LINK) $11.99 (-1.32%)
  • Bitcoin (BTC) $12,931.30 (-1.19%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft