The capital gains tax on operations with cryptocurrencies in South Korea can be set up to 20%.
Such opinion was expressed by representatives of the private sector during the discussion on legislative initiatives of the country’s authorities, reports Cointelegraph with reference to local media.
Proposed changes to existing legislation treat crypto assets as goods, not currencies. According to lawmakers, virtual assets can be considered as tradable electronic certificates of economic value. At the same time, during operations for sales purposes, it can be perceived as an asset.
“Until now, virtual assets have been recognized only as a function of currency and have not been subject to income tax, but recently, virtual assets (like Bitcoin) are increasingly being traded as goods with property value. Considering various conditions, such as the recognition of intangible assets with property value, the necessity of taxation, and the recognition of the property value of virtual assets are being raised at the same time.” the publication says.
Residents of other countries will be exempt from this tax.
According to the South Korean Financial Services Commission (FSC), the average daily trading volume of cryptocurrencies in the country is 1.33 trillion won ($ 1.1 billion). From January to May 2020, this value reached 7.6 trillion won ($ 6.33 billion).
Recall that work on the bill introducing a capital gains tax for transactions with bitcoin and other cryptocurrencies in South Korea was planned to be completed in the first half of the year.