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South Korea may introduce a 20% tax on cryptocurrency income

South Korea may introduce a 20% tax on cryptocurrency income

The Ministry of Finance of South Korea is considering the possibility of introducing a 20% tax on income from cryptocurrencies.

The Korea Herald reports that income from cryptocurrencies is equated to “other income”, which is taxed at a rate of 20%. In other words, income from cryptocurrencies will be subject to the same tax as, for example, winning the lottery.

“The Ministry of Finance has yet to make a final decision on the direction of taxation of digital asset trading and equate income from cryptocurrencies to other income, and not to income from capital gains,” the representative of the Ministry said.

Earlier, it was reported that the South Korean authorities have begun developing new legislation on taxation of income received from the turnover of cryptocurrencies. At the same time, although at the moment, according to the laws of the country, income from cryptocurrencies should not be taxed, the national tax service of South Korea (NTS) has added
$69 million in taxes to the bithumb cryptocurrency exchange. After that, the trading platform sued NTS with a request to return the unfairly paid taxes.