- The Ministry of economy and finance in South Korea is getting ready to apply an amendment to the nation's income tax law.
- Whereas little is known, speculation believes that rules for profitable sales of crypto as well as profits from national crypto mining projects will be included.
The Ministry of economy and finance in South Korea is getting ready to apply an amendment to the nation's income tax law. Whereas little is known on the specifics on what this will include, speculation believes that rules for profitable sales of cryptocurrencies as well as profits from national crypto mining projects will be included. Reported earlier this week on the 27th of May, the ministry also highlighted including the profit are generated by initial coin offerings.
This is a big change to the country's stance on ICOs which are still banned in the country.
The report further talks on crypto to crypto transactions such as bitcoin. They say that it will likely be exempt from the proposed amendment and only seeks to tax for-profit transactions.
The ministry has said the following:
“We are considering capital gains tax or other income tax on profits made by domestic and foreign investors in the transfer of virtual assets.”
The process of South Korea creating tax laws on cryptocurrency seems to be just the start of the story. In December last year, the national tax service imposed 80 billion of its local currency to the local crypto platform, Bithumb Korea. This would be equivalent to just shy of $70 million. The company took administrative litigation over the tax bill as taxation rules regarding foreign corporations have not yet been applied to the crypto industry if they have no permanent establishment in South Korea.