There is a growing expectation that the South Korean government will impose a 20% tax tax on gains derived from Bitcoin and other cryptocurrency tradings, according to a report in the English-language daily Korea Times.
The Ministry of Economy and Finance has reportedly ordered its income office to review cryptocurrency taxation.
News of the proposed rate follows reports earlier this month that South Korea is drafting a tax regime for profits made from trading cryptocurrencies.
Some observers have speculated that the government may categorize gains obtained through cryptocurrency trading as “other income” and not capital gains. The other income category also includes gains made from lectures, lottery purchases and prizes.
The need for clarity on crypto taxation came into sharp focus at the end of December, when major local cryptocurrency exchange Bithumb announced that it was considering administrative litigation over an $68.9 million tax bill that it believes has no legal basis.
Asia Times / ABC Flash Point News 2020.