The Ministry of strategy and Finance of South Korea has denied reports on the forthcoming introduction of a 10% tax on capital gains from operations with cryptocurrency.
That Korean authorities are preparing to impose a new tax, announced on June 22 a local publication Chosun, citing a “senior official” whose name was not disclosed.
“We have already decided that the profit from investing in cryptocurrency should be taxed. The only question is how much time we should give to investors and when to start implementing this innovation,” he reportedly said.
According to Chosun, the government decided to classify this income as “other income”, which implies that the authorities do not consider cryptocurrencies to the financial and investment products. According to Korean law, under the “other income” refers to the irregular or temporary jobs.
However, the Ministry of strategy and Finance said that the media reports are incorrect and untrue.
As noted by Business Korea even if the Korean government decides to impose a tax on capital gains from transactions with cryptocurrency, he will need to create a legal system for obtaining tax information from the cryptocurrency exchanges, but this takes time. Accordingly, rapid changes in this area should not wait.
The South Korean government is considering introducing a tax for capturadora since the beginning of this year. Under this initsativy the Ministry of strategy and Finance has sent its officials to countries such as USA, Germany, Japan and others, so that they could learn their system of taxation of virtual currencies.
According to the latest data, the Agency will submit a plan of taxation in this area in August of this year.