Transactions of cryptocurrency in South Korea is still tax-free due to the lack of tax regulations. One of the lawyers in his early 40s revealed that in the last year he made a profit of 30 million won on the investments he made on bitcoin and ether. And apart from this, the most interesting part is that he did not pay any kind of tax on that virtual currency investment as per the report generated by Money Today.
As the law stands, the citizens of South Korea are able to make profits in millions of won from cryptocurrency investments and transactions without being required to pay the taxes on these profits. The news outlet reiterated that “There is no obligation of paying any kind of tax even if you earn hundreds of thousands of won or even hundreds of millions of won on the investments made in virtual currency.” The news outlet also detailed about the 0.3% sales tax when selling the stocks for the listed securities and 0.5% tax for the unlisted one.
However, there is some recent news that the regulators have now set a tentative timeframe for the introduction of a new law on crypto taxations. In order to rectify the current situation, the tax authorities have now set up a virtual currency taxation standard in the first National Tax Administrative Reform Committee in the year 2018. The Ministry of Strategy and Finance has announced a schedule set for the cryptocurrency taxation plan which is the first six months of the year. The news outlet furthermore added that ” Korea would be able to pass the tax bill in the first six months of the year if it gets included in the amendment bill of the August Tax law. However, the virtual currency taxation bill will be implemented in the upcoming next year.”
Recently the local media of South Korea reported that the virtual currency taxation bill might come in June. After the report was published, the Ministry of Strategy and Finance clarified by saying that they are currently considering the taxation data through the virtual currency taxation task force and added that the report of the local media is not true. An official of the Ministry made a confirmation by saying that, “we have not set any specific timeframe for the same but we are thinking we are planning of announcing the virtual currency taxation bill in the first half of the year.”