Crypto Capital Gains Tax Could Be 20% In South Korea
Crypto Capital Gains Tax Could Be 20% In South Korea
July 14, 2020
Crypto Capital Gains Tax Could Be 20% In South Korea
Crypto Capital Gains Tax Could Be 20% In South Korea
July 14, 2020

South Korea’s crypto capital gains taxes could rise as high as 20% as discussed by members of the South Korean private sector on a crypto-related taxation bill. A bill was proposed by the National Assembly to impose taxes on cryptocurrencies.

Proposed amendments to the existing laws of South Korea also plans to classify cryptocurrencies as “goods,” rather than currencies. 

According to the lawmakers, virtual assets can be considered as electronic certificates of economic value that can be traded electronically. However, when transactions are for sales purposes, it could be then viewed as an asset.

A South Korean court referenced on Bitcoin stating:

“Until now, virtual assets have been recognized only as a function of currency and have not been subject to income tax, but recently, virtual assets (like Bitcoin) are increasingly being traded as goods with property value. Considering various conditions, such as the recognition of intangible assets with property value, the necessity of taxation, and the recognition of the property value of virtual assets are being raised at the same time.”

The report also highlighted that crypto trading withholds capital gains tax even for those who do not reside in the country. In addition, Yang Kyung-sook, representative of the Democratic Party, proposed an amendment to the Income Tax Law and imposed a 20% capital gains tax on income generated by transferring virtual assets. Judging from cryptocurrencies as goods rather than money, it is to be considered as a taxable capital gains tax.

ALSO READ :  Chai to Launch Mobile Blockchain-Based Payments in South Korea

Figures from South Korea’s Financial Services Commission shows that an average of 1.33 trillion won ($1.10 billion) was being traded per day using crypto. In addition, an average of 7.609 billion ($6.33 million) won was traded between January – May of 2020.

Tax rates and methods of taxation may change in the course of discussion at the National Assembly. The government also said it will announce the taxation plan for cryptocurrency in July.

Korean Yonsei University economist, Sung Tae-yoon have recently warned that the decision to tax crypto capital gains in South Korea could slow down the technology’s emerging market.

Source: Cointelegraph


Crypto News Point a news platform of Digital Notice Media Labs is primarily a regular publication of information, commentary and articles focused extensively on fintech, blockchain technology, cryptocurrency, blockchain-based tokens, cryptocurrency market trends, and trading strategies. We do not provide individually tailored investment advice and does not take a subscriber’s or anyone’s circumstances into consideration when discussing investments, nor is Crypto News Point registered as an investment adviser or broker-dealer in any jurisdiction. Information contained herein is not an offer or solicitation to buy, hold, or sell any digital assets.

Affiliate Disclosure: To help support the work we do here at CNP, we often link to products and deals from around the web. Should you buy some of these, we may get a portion of the sale.

We in generally gather content from the major websites. In every article there is always a clear link and attribution to the source publication. If you have any issue with any of our published content taken from your site, kindly let us know so that we can take appropriate action. In any case, the content of the pages of this website is for your general information and use only. It is subject to change without notice.

You May Also like

Jafrin Ahmed

Crypto newbie passionate about creating resourceful content on blockchain technology, cryptocurrencies and decentralized apps.
Share This

Share This

Share this post with your friends!