According to the Korea Herald report, the South Korean ministry of economy and finance has ordered the office of income tax to review a taxation plan for cryptocurrencies. The call for taxing cryptocurrencies has raised speculations that the government may categorize gains from cryptocurrency trading as other income.
The government may impose a 20% tax on income from cryptocurrencies.
A government official told The Korea Herald that finance ministry has not finalized its plan to tax cryptocurrencies, but there is a possibility that the government may impose a 20 percent tax on cryptocurrencies. Earlier, it was reported that the government of South Korea is studying approaches of other major countries to amend its tax laws regarding cryptocurrencies.
Bithumb is fighting to nullify a $70 million tax slapped by NTS.
In December 2019, South Korea’s leading crypto exchange Bithumb was hit by a massive 80 billion won ($70 million) tax bill by the country’s National Tax Service. Bithumb was slapped with a $70 million bill for withholding taxes on trading activities of foreign customers. The exchange has called the tax bill imposed by NTS “groundless” and has challenged it in the court. Bithumb also announced to invest roughly $8 million into South Korea’s regulation-free zone for blockchain development in the city of Busan.