South Korean Finance Minister Reaffirms Cryptocurrency Tax Plans

South Korean Finance Minister Reaffirms Cryptocurrency Tax Plans

By Kluma | InterestingCrypto | 18 Jun 2020

On June 17, speaking to the Finance Committee of the Parliament, South Korean Finance Minister Hong Nam-ki announced that a cryptocurrency tax would be introduced in the country.

Local news agency Korea JoongAng Daily reported that next month, the Ministry of Finance will provide additional information about its plan.

Hong Nam-Ki told the Finance Committee that the government is continuing to reorganize the tax system and is “trying to clarify the list of taxable items and types of taxes this year.”

Back in January 2020, the Ministry was considering introducing a 20% tax on income from cryptocurrencies. Some experts then suggested that cryptocurrency profits could be considered “other income” for tax purposes, and that this would not be a capital gains tax.

However, in the end, the Korean Tax Policy Association proposed a two-stage taxation scheme - a low trade tax and a cryptocurrency income tax.

As a result, the question of which taxes will be introduced for cryptocurrencies remains open.

Nam-Ki also said that the government is conducting international discussions on the structure of taxes on digital assets.

In his opinion, such taxes will help increase the flow of money from foreign firms. Nam-Ki also acknowledged that some local firms would have to be liable for taxation abroad.

The activation of the legislators of South Korea in terms of taxation of cryptocurrencies occurred after the largest South Korean exchange Bithumb previously decided to challenge the tax account in the amount of $ 69 million based on the fact that cryptocurrencies in the country are not legally recognized as currencies.

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