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South Korea Finance Ministry To Impose 20% Taxes On Cryptocurrency Incomes

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South Korea Finance Ministry To Impose 20% Taxes On Cryptocurrency Incomes
  • South Korea has been contemplating levying a 20% tax on gains made from cryptocurrency transactions.
  • South Korea has already made the news previously for imposing significant taxes on the largest cryptocurrency exchange operating out of the country, Bithumb.
  • Bithumb initially retaliated and was purportedly planning on taking the case to court for improper treatment and taxation.

According to multiple government sources, the Ministry of Economy and Finance in South Korea has been contemplating levying a 20% tax on gains made from cryptocurrency transactions.

The ministry has drafted a taxation plan, and it reported to be currently under review within the income tax department. The draft also said to have already passed its rounds through the property tax department and gained approval.

A government official told a local news outlet, Pulse, that, 

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Other forms of income in South Korea are generally subject to 20% taxes of 40% of the total revenue, and the rest 60% is tax-deductible.

South Korea has already made the news previously for imposing significant taxes on the largest cryptocurrency exchange operating out of the country, Bithumb. The transaction forced to pay 80.3 billion won ($69.2 million) by the National Tax Service (NTS) for their foreign customer’s incomes.

The NTS had not imposed such a tax as of previously and had suddenly recognized miscellaneous income and capital gains from cryptocurrency trading as “assets”.

Bithumb initially retaliated and was purportedly planning on taking the case to court for improper treatment and taxation but later went on to pay off the taxes later in the week.

This could prove to be a severe hit to cryptocurrency traders in the country as it proves to be an essential hub for cryptocurrency.

The country houses blockchain regulatory free zones and promotes cryptocurrencies and blockchain technology avidly. Therefore it would make sense that the government is trying to tax the industry to make sure it can give back to the sector more.

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