News : Starting from 2021 South Korea will taxed corporate income tax from crypto-currency

Starting from 2021 South Korea will taxed corporate income tax from crypto-currency

Korea will begin to hit corporate income tax (Profit tax) from Bitcoin and other cryptocurrencies in 2021.

Accordingly, the services relating to cryptocurrencies such as ICO, exploitation, will be taxed.

The Ministry of Economic and Finance of Korea has proposed amendments to the applicable tax law for the cryptocurrency industry, with the support of the Ministry of Information and Technology.

In March 9, the Department will make modifications before Congress. And once approved, the law will take effect in 2021.

Starting from 2021, will allow authorities to taxing corporate income tax generated from the business of digital assets.

However, it is possible to profit from transactions between cryptocurrencies that are still tax-exempt.

In addition, South Korea is also considering paying interest tax on capital and other income taxes on the profits of domestic and foreign investors in the transfer of cryptocurrency assets.

Previously the Korean government also attempted to taxed cryptocurrency, however, while Korea was considering Bitcoin to be an asset.

Kim Yong-Min, chairman of the Korean Blockchain Association, noted that it will take three to four years before the regulatory authorities really understand the cryptocurrency.