Bitcoin

South Korea will soon be taxes on the income of transactions in crypto-currencies

December 12, 2019 by Xavier

In the Face of the frantic pace by which develops the industry of crypto-currencies, South Korea is doing its best to adapt to this evolution. Thus, the south Korean government currently focuses to fully integrate the industry Blockchain in the economy of the countries providing tax revenues.

A decision that deserves more precision

This new tax will be particularly the capital gains on transactions in crypto-currencies.
According to government sources, the ministry of Economy and Finance of the country would be already in the process of studying the necessary amendments to the legislation pertaining to it to be able to introduce these measures for the first half of next year.
The implementation of these fees would be effective soon, and this, independently of the adoption of the draft law on the trade of crypto-currencies studied currently in the national Assembly.
However, the approaches of the government should be based on a concept more clear about the crypto-currencies in order to clarify its interventions in the sector.
Among the issues to be resolved is the question of whether the gains related to crypto-currencies should be regarded as similar to the gains made in the stock market transactions, or rather in those of real estate transactions.
The government should also have access to records of trading on the exchange sites of crypto-currencies in order to facilitate the taxation of the crypto-industry.

A tax that is becoming more prevalent across other countries

As a reminder, South Korea is not the first country to bring the industry of crypto-currencies for the benefit of the funds of the State.
Not later than the last month, the Ukrainian government had proposed a bill to tax the winnings collected on the activities related to crypto-currencies.
If this bill is voted on by majority at the Ukrainian Parliament, the country provides a tax with a rate of 5% gains in crypto-currencies for the first five years before it is aligned with the standard rate of 18%, from this period.
What do you think of these initiatives in south korea on the taxation of the crypto industry ? Respond in the comment section below.
(Be the FIRST to vote)

About the author

Jeremiah Faber

Jeremiah Faber

Jeremiah is an explorer by heart – both in the physical and the digital realm. A traveler, Jeremiah continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Jeremiah and through his business acumen has gained financial profits as well as fame in his business niche.