The South Korean government will receive tax from Bitcoin next year after the prepared regulations have been approved.
According to local media reports, South Korea will start taxing Bitcoin and other cryptocurrencies starting next year.
The tax will also apply to Bitcoin mining activities and revenues from ICOs after parliament’s approval.
With the support of the country’s Ministry of Economy and Finance, the Ministry of Information and Technology proposed to make amendments to the existing tax law, including the crypto money industry.
In September, the ministry will present the changes brought to parliament. The law, which will come into force in 2021 after its approval, will allow the taxation of profits from the sale of digital assets against cash. Trading between cryptocurrencies will be exempted from tax, and similar sales to losses will be evaluated in this context.
“We are reviewing capital gains tax or other income tax on earnings from local and foreign investors from virtual assets,” said a ministry official on the issue. The proposed amendment will be announced in July and will be submitted for approval in September. ” said.
The South Korean government had previously attempted to tax Bitcoin, but the regulations could not be applied due to different opinions from the government.
Seung Seung-young, a tax expert, thinks the planned adjustments will be open to exploitation by investors. Seung-young said, “You can prevent taxation if you do your transactions among people without a stock exchange. Even with IP monitoring, when there are many targets, administrative costs will increase and it will be difficult to follow up every day. ” said.
Korea Blockchain Association President Kim Yong-min says the government will take three to four years to create a infrastructure that truly understands crypto money.