- Tax experts have advised that the Korean government should be applying a low-level trading tax on profits in cryptocurrency.
- According to a local news report, the government in the nation is expected to announce its tax reform plan at the end of this year.
Tax experts in South Korea have advised that the Korean government should be applying a low-level trading tax on profits in cryptocurrency before giving the public transfer income tax. According to a local news report, the government in the nation is expected to announce its tax reform plan at the end of this year.
Such a low-level trading tax was pushed in the agenda because of the lack of legal infrastructure to enact transfer taxation on transfers.
In a seminar that went down on the 21st of February, the South Korean government was advised by members of the Korean Tax Policy Association to act on this plan. The main argument was made that by taking such an approach to integrating income tax on crypto, it will see the most efficiency.
The proposal by the tax expert was agreed by the blockchain Association in Korea. Such a recommendation was justified as they said:
“Related laws are still absent and the taxation infrastructure is still insufficient to cover cryptocurrencies and, as such, some supplements need to be added on the expense calculation side.”
On top of this, the association went on to say that before imposing a transfer tax, the clarity on defining cryptocurrency acquisition costs is a necessity. However, given that digital assets are being traded at such different rates on the different platforms in Korea, this isn’t going to be easy to define.
It will be interesting to see how this plays out. For more news on this and other crypto updates, keep it with CryptoDaily!