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- The South Korean government is now planning to soon introduces a taxation policy for cryptocurrencies in its tax reform plans for the year 2021.
- The experts from the Korean Tax Policy Association at the seminar had said that the profits derived from cryptocurrency trading should be made subject to the transfer of income tax.
The tax experts in south Korea have advised the government to make a new low level of trading tax on the profits from cryptocurrency transactions before they are made a subject to regular income tax.
The South Korean government is now planning to soon introduces a taxation policy for cryptocurrencies in its tax reform plans for the year 2021. The tax experts had said that a low-level trading tax should be put in place, which will precede gradual transfer income tax application in a seminar that was held on the 21st of Feb this year.
It looks like the South Korean heard them and took their suggestion very seriously, and now the government plans on announcing the new tax reform plan in the second half of this year. This means that they are already working hard on it and will be letting the world know what they have decided in around July to December.
The experts from the Korean Tax Policy Association at the seminar had said that the profits derived from cryptocurrency trading should be made subject to the transfer of income tax.
The income being transferred defined in the Income Tax Act should, for sure, include the crypto and digital assets through prior legislation, as noted and said by the tax experts of the panel present at the seminar.
The Korea Blockchain Association said
“Still, related laws are still absent, and the taxation infrastructure is still insufficient to cover cryptocurrencies and, as such, some supplements need to be added on the expense calculation side,”
because they had made the same proposal.
“Acquisition costs need to be clarified for transfer income tax imposition, but cryptocurrency acquisition costs are hard to clarify because the currencies are traded in various exchanges, and related information and data are restricted. Infrastructure needs to be established after case-by-case trading tax imposition.”
the Korean Blockchain Association added.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
