Korean Government Seeks to Strip Tax Perks From Crypto Exchanges

Cryptocurrency exchanges in South Korea may soon lose eligibility for significant tax benefits currently granted to smaller companies.

A proposed revision to the existing tax law, announced by the South Korean government on Monday, would exclude crypto exchanges from the category of startups or small and medium enterprises (SMEs) that can claim a tax cut of up to 100 percent, according to CoinDesk Korea.

Under the existing tax law in the country, startups and SMEs are able to apply for a deduction of 50–100 percent of their income tax or corporate tax in the first five years after their establishment, and 5–30 percent thereafter.

However, the government appears to have decided that crypto platforms do not justify the benefits, explaining that “cryptocurrency transaction brokerage is not effective in generating added value.”

A draft revised bill will be presented to the National Assembly by Aug. 31 for parliamentary debate before a decision will be made on whether and when the updated legislation should take effect…

Read Full: Korean Government Seeks to Strip Tax Perks From Crypto Exchanges