News South Korea Officials Cause Confusion With Drafting Legislation to...

South Korea Officials Cause Confusion With Drafting Legislation to Tax Individual Cryptocurrency Profit

-

- Advertisment -

South Korea Officials Cause Confusion With Drafting Legislation to Tax Individual Cryptocurrency Profit

South Korea officials are reportedly causing some confusion with the latest drafted legislation that will tax individual crypto profits. According to Cointelegraph, South Korea’s officials stated that under current law, the government cannot impose income taxes on individual profits that are from cryptocurrency transactions.

South Korea’s previous Ministry of Strategy and Finance confirmed it will levy taxes on virtual assets through a tax code revision bill, but at a later date. The officials further declared:

“In the case of a corporation’s virtual currency transaction, all transactions that increase the entity’s net assets are subject to taxation under the current law, so it is taxable, but it is practically impossible to produce tax revenue results by distinguishing only virtual currency transactions.”

The officials also noted that they are preparing measures to impose taxes on virtual currencies by reviewing cases of taxation by major countries, which is consistent with accounting standards, as well as trends, in international discussions of money laundering prevention.

Although the South Korean government it is holding off on imposing taxation on earnings from digital asset trading, legislation is in the works.reportedly does plan to create a bill that will address taxable cryptocurrency transactions by the first half of 2020.

The plans for crypto transaction taxes come just after the  National Tax Service (NTS) of South Korea confirmed that it will be withholding taxes worth an estimated 80.3 billion Korean won (appr. $70 million) from digital asset trading platform, Bithumb. As previously reported, Bithumb Holdings’ largest shareholder, Vidente, which operates Bithumb’s Korea division, confirmed the withheld amount and noted that the tax would be imposed on the exchange’s overseas clients. The company’s stated:

“Bithumb Korea is planning to take legal action against the tax claim so the final payment can be adjusted in the future.”

The amount of tax to be withheld was determined by taking into account miscellaneous income, meaning irregular revenue sources such as lottery gain

Source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest news

Using Blockchain to Fight Climate Change, MOSS is changing the Narrative

The effects of global climate change are not undeniable. From glaciers shrinking to flooding, temperature rise, and...

DeFi Tokens Still Bullish with Triple-Digit Prospects Amidst the Bitcoin Rally

The Decentralized Finance (DeFi) market seems to have reclaimed its bullish status in the ongoing crypto market...

Bitcoin Security Lessons from The KuCoin Cryptocurrency Exchange Hack

It is a recent but not new happening that a hot wallet from a crypto agency has...

Facebook’s long-awaited Libra is Coming in January 2021

In a more limited form, the Libra Association's projects are being implemented. It will only launch a...
- Advertisement -

Polkadex Enhances the Cryptocurrency Trading Experience

The global economy has not entered the modern era as of yet. Luckily, there are tools to...

Ethereum Price Sees $500 for the First Time in Two-and-a-half Years

First launched in 2014, Ethereum or Ether is one of the oldest altcoins and probably the most...

Must read

- Advertisement -

Read Next
Recommended to you