The South Korean government plans to begin taxing residents’ digital currency-related profits.
The nation’s Ministry of Economy and Finance is calling for implementation next year, local news agency The Korea Times revealed on December 8, citing “government sources.”
“Related discussions have been taking place. The revised bill will be drawn up by the first half of next year,” an undisclosed ministry official said through the news outlet.
The administration is allegedly looking to impose capital gains tax on digital currencies paying little heed to the bill’s passage. With that in mind, the government should have an exact definition of digital currencies and choose how it will tax cryptocurrency gains—in accordance with stocks or real estate capital gains, according to the report. The government will likewise purportedly need to get trading records from digital currency exchanges so as to impose taxes appropriately.
A month ago, Ukraine also proposed a draft bill to impose cryptocurrency gains tax. In case the bill gets passed, the European nation will impose an initial 5% tax on cryptocurrency gains for the initial five years. After that period, the standard rate of 18% could apply.