The South Korean government has announced plans to make changes to the tax law, which will be used for cryptocurrency exchanges a number of serious benefits.
“From next year, the processing of the virtual currency will be excluded from the number of industries entitled to tax reduction for SMEs (small and medium enterprises),” said the government in an official statement.
Currently, tax authorities of the country are of the crypto currency exchange to venture businesses and small and medium business, which allows them to obtain significant benefits. For example, for such enterprises, the corporate tax may be 5 years is reduced by 50-100%. In addition, there are significant concessions and other tax payments, including benefits depreciation on assets acquired in the first 4 years of operation.
As explained by the government, to exclude crypto currency exchange from the list of companies eligible for tax relief, resolved as “in the business of cryptocurrency trading there is no effect of value creation”. Changes in the tax legislation will be presented to the Parliament in the case of receiving approval will take effect from next year.
Recall that in the spring of this year, the Ministry of strategy and Finance of South Korea planned to announce the rules of taxation of the cryptocurrency sphere at the end of June. And recently, the Agency has denied the rumors about the introduction of a 10% tax on capital gains from operations with cryptocurrency.