Many countries around the world still need to catch up to regulate and control cryptocurrencies. While some demand significantly higher taxes on trading cryptocurrencies, trading with the new digital assets is considered unregulated in many countries. So far, South Korea has been a tax haven. However, this could change now.
New law proposal: 20% tax on crypto profits
In many countries, including Germany and Austria, high taxes are due on profits from trading cryptocurrencies. Wrongly, as the crypto community agrees. The situation is different in South Korea. The country was previously a tax haven, because trading in digital assets has so far been free of any taxes.
The Ministry of Finance in South Korea announced earlier this year:
Profits from virtual asset transactions are not listed and therefore not taxable.
However, not all ministers of the Asian country with more than 50 million inhabitants are likely to agree with this regulation. The deputy finance minister has now submitted a new legislative proposal. This provides for a 20% tax on cryptocurrency trading. Small investors get off well with the bill, as the rule only applies to annual profits of $ 2,000 or more.
Should the proposed law go through, traders who earn more than the above amount will have to pay 1% tax on their profits from October 20st. A decision is due in September at the latest, like decrypt.com reported.
State wants to benefit from cryptocurrency trading
The new bill could ruin South Korea's reputation as a tax haven for cryptocurrency trading. The state should not care. Because the increasing popularity of digital assets and the resulting increase in trading volume could bring the state a decent amount of taxes. Of course you don't want to miss that.
At the beginning of the year, it was still clear that residents of South Korea would not have to pay taxes on profits from trading cryptocurrencies. In September it will be decided whether it will stay that way.
Markus from Kryptokumpel.de
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