Cryptocurrency Tax Plan Is Going To Be Announced By South Korea

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Cryptocurrency Tax Plan Is Going To Be Announced By South Korea

The ministry of finance in South Korea is planning to announce a cryptocurrency taxation framework by June of 2018. The government is expected to begin taxation in 2019.

In the aftermath of the recently concluded Finance Ministers’ meeting at this year’s G20 summit, South Korea is planning to unveil its cryptocurrency tax plan alongside the G20’s own plan to field recommendations for regulating the crypto sector by July 2018.

The Ministry of Strategy and Finance is considering capital gains tax and other income taxes as possible inclusions for its tax plan, as Korean publication Financial News reports.

An official from the ministry stated:

“ We do not have a specific time frame, but we are thinking about announcing a virtual money tax in the first half of the year’’.

Among other proposals, the ministry is looking at levying a tax on profits generated by the sale of cryptocurrencies. If any income stemming from crypto transactions is seen as ‘temporary and irregular’, other forms of income taxes are reportedly being considered.

The taxation ministry of South Korea has been studying crypto-taxation approaches taken by other countries, such as Japan, Germany, United Kingdom and United States.

As Korean authorities seek to normalize cryptocurrency transactions, allaying previous fears of a ban on domestic exchanges and crypto transactions, the Financial News report also hints at the government planning ‘full-scale” crypto regulation following the country’s elections in June.

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