South Korea’s Ministry Of Economy And Finance is considering imposing a 20% tax on crypto income.
On Jan. 20 The Korea Times published a report stating that the ministry had reportedly ordered its income office to review cryptocurrency taxation although not finalized its plan.
Government’s Categorization On Crypto Tax
The proposed plan is followed by news reports from the earlier month that South Korea is drafting a tax regime for profits made from trading cryptocurrencies.
Some have speculated that the government may categorize gains obtained through cryptocurrency trading as “other income” and not capital gains. The other income category also includes gains made from:
South Korea’s cryptocurrency regulation has seen significant developments since Park Yong-jin, a member of the National Policy Committee from the ruling Democratic Party, introduced the first-ever taxation policy for crypto in 2017.
In 2019, the National Assembly’s national policy committee approved a bill that would give more legitimacy to digital assets by subjecting them to more scrutiny and government oversight.