The South Korean Ministry of Strategy and Finance (MOSF) is planning to announce a framework on cryptocurrency taxation by June’s end, CCN reported referring to a local media outlet Financial News.
The G20 meeting held last month in Buenos Aires focused on cryptocurrencies, among other things. Speaking at a press conference, Argentina Central Bank chair Frederico Sturzenegger said the member countries have a July 2018 deadline for recommendations on cryptocurrencies.
South Korea is reportedly planning to announce its cryptocurrency taxation plan alongside G20’s recommendations. The MOSF is considering levying capital gains tax and other income taxes on cryptocurrency users.
“We do not have a specific time frame, but we are thinking about announcing a virtual money tax in the first half of the year,” an official from the ministry said.
The ministry is also considering imposing tax on the profits generated by the sale of cryptocurrencies. Furthermore, if the income from cryptocurrency transactions is considered as temporary and irregular, other income taxes may be imposed.
“In order to tax the income accruing from a virtual currency transaction, it is necessary to amend the income tax law to add it [to the category of] taxable objects,” the Financial News wrote (as quoted by CCN).
The Tax Division of the Ministry of Information and Communication is expected to submit a proposal on the revision of the taxation bill at the National Assembly in August 2018. This is expected to make the way for the rollout of the cryptocurrency taxation policy from 2019.
