The South Korean government has announced that some taxes can be applied to cryptocurrencies beneath the present law, which will be finalized in the 1st half of this year. Other taxes are also being deemed but some are not easily implemented beneath the current tax system.
The South Korean government has been discussing techniques to tax cryptocurrency transactions. “Virtual currencies are not taxable beneath the current Revenue Tax Act,” Chosun described. Previously, the regulators had not confirmed if the existing legal framework enables the taxation of cryptocurrencies.
Nevertheless, 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 division of the Ministry of Method and Finance, was quoted by the Kyunghyang Shinmun:
There are some factors that can be taxed under the present law.
Specifically, “Under current law, corporate taxation is possible,” Edaily quoted him explaining. The publication noted that the tax plan is anticipated to be finalized within the subsequent six months. News1 Korea added, “The component that can be taxed by the existing law will be taxed in the initial half of this year.”
The Virtual Currency Taxation Job Force was not too long ago produced following the releases of government’s measures for crypto regulation. The group met for the first time recently with related specialists and ministries such as the Korean Ministry of Internal Affairs and Internal Revenue Service, according to Choi.
He was quoted by Asia Today, “There are some places exactly where legislation is required, such as capital gains tax. We need to have to evaluation whether or not it is acceptable to impose capital gains tax and legislate.”
News1 Korea elaborated:
At present, it is concluded that the taxation of earnings tax, corporation tax, transfer earnings tax, etc. is feasible in the case of virtual currency, although taxation of virtual currency is hard in terms of worth-added tax.
In addition, at a current meeting of the National Financial Advisory Council, presided over by President Moon Jae-in, an official was quoted saying “countermeasures against the difficulty of tracking tax income are also necessary.” He added, “there is a need to have to regulate brokers who mediate virtual currency transactions such as exchanges and accumulate taxation info.”
How several different taxes do you feel the Korean government will impose on cryptocurrencies? Let us know in the comments section under.
Images courtesy of Shutterstock and Edaily.
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Published at Mon, 08 Jan 2018 11:35:08 +0000