The South Korean government has announced that some taxes can be applied to cryptocurrencies under the current law, which will be finalized in the first half of this year. Other taxes are also being considered but some are not easily implemented under the current tax system.
Some Taxes Coming Soon
The South Korean government has been discussing ways to tax cryptocurrency transactions. “Virtual currencies are not taxable under the current Income Tax Act,” Chosun described. Previously, the regulators had not confirmed if the current legal framework allows the taxation of cryptocurrencies.
However, at a briefing on the amendment bill for the Enforcement Decree of the Revision of the Tax Code on Sunday January 7, Choi Young-rak, head of the tax department of the Ministry of Strategy and Finance, was quoted by the Kyunghyang Shinmun:
There are some things that can be taxed under the current law.
Specifically, “Under current law, corporate taxation is possible,” Edaily quoted him explaining. The publication noted that the tax plan is expected to be finalized within the next six months. News1 Korea added, “The part that can be taxed by the current law will be taxed in the first half of this year.” […]