Taxes on cryptocurrencies, South Korea denies rumors

Taxes on cryptocurrencies, South Korea denies rumors. However, the new executive tax plan is awaited.

Taxes on cryptocurrencies, South Korea denies rumors - Bukchon seoul tower 1024x576 1024x576

The South Korean government's finance ministry has denied the veracity of a recent news leak that authorities are preparing to apply a capital gain tax of 10%, based on cryptocurrency profits.

On June 22, the internal news agency Chosun cited a "senior government official" to say that the government was preparing to introduce a 10% tax rate on profits resulting from cryptocurrency returns, regardless of the size of the investment.

Tax the profits of cryptocurrencies

“We have already decided to tax the profits from cryptocurrency investments"Said the government official. "The question is just how long should we give investors and when to start implementing the tax" - continued the rumor, who then specified how the government had chosen to classify these profits as "other incomes", thus suggesting that the executive did not want to consider cryptocurrencies as financial or investment products.

South Korea 10% tax 

According to national tax laws, "other income" refers to irregular or temporary income, unlike income from work. This alleged 10% tax was supposed to have been included in a new version of this year's tax account with a grace period of one to two years before it came into effect.

However, the Ministry of Finance intervened decisively on the issue stating that the report does not contain any hint of truth. However, the government's new fiscal plan is awaited: a document that should have been announced in June, and which may contain other news regarding cryptocurrencies.