Copy link
Increase text size
Decrease text size
Link copied

South Korea’s tax agency NTS to withhold $69M from crypto exchange Bithumb’s foreign clients

Tue, 31 Dec 2019, 13:10 pm UTC

South Korea’s National Tax Service (NTS) has announced that it will withhold tax from cryptocurrency exchange Bithumb’s foreign customers, Korea JoongAng Daily reported.

This marks the first instance of the government imposing a tax on crypto transactions. A notice uploaded by the exchange’s largest shareholder Vident on the Financial Supervisory Service’s data system states that the NTS will impose “80.3 billion won [$69.3 million] of withholding tax on our [Bithumb’s] foreign clients.”

“Bithumb Korea is planning to take legal action against the tax claim so the final payment can be adjusted in the future,” it added.

Withholding tax, Korea JoongAng Daily explained, is paid by the party that makes payment in a transaction, not the recipient.

The NTS categorized crypto-trading earnings of foreign customers as “miscellaneous income,” which refers to irregular income such as rewards or lottery gains. The agency calculated the 80.3 billion won amount based on the amount withdrawn by foreign clients. The withholding tax rate for miscellaneous income is 22 percent.

An anonymous source at the exchange told the news outlet that even after the government banned minors and foreigners from opening crypto exchange accounts and trading cryptocurrency in December 2017, foreigners still used domestic exchanges.

“So were transactions using fake names. Even for the exchanges, it’s difficult to know who the investors actually are and how much their trading profits are. It’s questionable what the taxation was based on,” the source added.

Earlier this month, reports suggested that the country was going to introduce crypto tax regulations in 2020. The Ministry of Economy and Finance is working on a bill to tax capital gains from cryptocurrency transactions.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (btc) $43,233.00 (+0.94%)
  • Ethereum (eth) $2,963.82 (+0.55%)
  • Cardano (ada) $2.25 (-4.56%)
  • Tether (usdt) $1.00 (+0.17%)
  • Binance Coin (bnb) $340.97 (-4.00%)
  • Bitcoin (btc) $43,233.00 (+0.94%)
Jul 15, 2021 (Thursday)
13:30
BTC Surges by 1.16% Within 5 Mins, Marking 31,824.01 USDT
12:06
BTC Surges by 1.12% Within 5 Mins, Marking 32,104.8 USDT
10:25
BTC Drops by 1.03% Within 5 Mins, Marking 32,171.88 USDT
02:13
TriumphX Scouts 'MINAMCOMPANY' CEO Woo-Seong Lee As Creative Director
02:00
ETH Tops List Of Crypto Net Inflow With $298.96 Mln In Past 10 Hours
Jul 14, 2021 (Wednesday)
13:14
BTC Surges by 1.03% Within 5 Mins, Marking 32,738.08 USDT
09:03
BTC Surges by 1.01% Within 5 Mins, Marking 31,899 USDT
02:30
Crypto Market Sentiment On Jul 14: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $224.97 Mln In Past 10 Hours
Jul 13, 2021 (Tuesday)
02:30
Crypto Market Sentiment On Jul 13: Market In "Extreme Fear"
02:00
ETH Tops List Of Crypto Net Outflow With $178.61 Mln In Past 10 Hours
Jul 12, 2021 (Monday)
02:30
Crypto Market Sentiment On Jul 12: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Inflow With $164.82 Mln In Past 10 Hours
Jul 11, 2021 (Sunday)
21:31
BTC Surges by 1.02% Within 5 Mins, Marking 34,475.6 USDT
10:00
ETH Tops List Of Crypto Net Inflow With $122.76 Mln In Past 18 Hours
06:17
SOBA Listed On LATOKEN
02:30
Crypto Market Sentiment On Jul 11: Market In "Extreme Fear"
02:00
BTC Tops List Of Crypto Net Outflow With $87.56 Mln In Past 10 Hours
Jul 9, 2021 (Friday)
21:40
BTC Surges by 1.08% Within 5 Mins, Marking 33,911.8 USDT
02:30
Crypto Market Sentiment On Jul 09: Market In "Extreme Fear"
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft