South Korea will Tax Cryptocurrency under the Current Law

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Cryptocurrency News

The South Korean government has declared that few taxes may be applied to cryptocurrencies under current law, which will be finalized in the first half of this year. Other taxes are also considered but some are cannot easily be implemented under the current tax system.

Some Taxes Coming Soon

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The South Korean government has been discussing ways to tax cryptocurrency transactions. Before, the regulators had not confirmed if the current legal framework allows the taxation of cryptocurrencies. “Virtual currencies are not taxable under the current Income Tax Act,” Chosun described.

However, Choi Young-rak, head of the tax department of the Ministry of Strategy and Finance announced, at the guidance on the act bill for the Enforcement Decree of the Revision of the Tax Code on Sunday, January 7.

Later on, Kyunghyang Shinmun quoted:

“There are some things that can be taxed under the current law.”

Particular Taxes will be Discussed

According to Choi, the Virtual Currency Taxation Task Force has recently been created after the release of government measures for crypto regulation. The group recently met with relevant experts and ministries, including the Ministry of Internal Affairs and Internal Revenue Service of Korea.

Asia today quoted that, there are some fields where legislation is necessary, such as capital gains tax. We need to review whether it is appropriate to impose capital gains tax and legislate.

News1 Korea wrote:

“At present, it is concluded that the taxation of income tax, corporation tax, transfer income tax, etc. is possible in the case of virtual currency, while taxation of virtual currency is difficult in terms of value-added tax.”