The South Korean National Tax Service has announced its plan to impose taxes on cryptocurrencies including bitcoin. The agency is also discussing ways to make it compulsory for cryptocurrency exchanges to hand over their users’ transaction data.
South Korea’s Cryptocurrency Tax Plan
South Korea’s National Tax Service (NTS) has revealed its plans regarding the taxation of cryptocurrencies including bitcoin. This was announced at the 2017 National Tax Administration Forum which the agency jointly hosted with the National Tax Administration Reform Committee and the Korea Institute of Public Finance on Tuesday.
The NTS “has decided to push for the plan to impose an income tax and transfer income tax on virtual currencies,” wrote Business Korea. An NTS official at the forum was quoted by Korea Times:
We will pursue taxation on virtual currencies such as bitcoin. Since virtual currency is a kind of property such as real estate or securities, it should be taxed according to the principle that ‘there is a tax on income.’
Hank Kyung-soo, Deputy Director of the VAT Division, stressed the importance of collecting “detailed history data like who made transactions and how in a bid to impose taxes.” If the agency can find a way to obtain this data, he claims, “it will be possible to make a full taxation if this is done.” To this end, he said:
We are discussing with the related ministries, such as the Ministry of Strategy and Finance, how to make it compulsory for virtual currency exchanges to submit transaction data.
Amending Tax Laws
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