Korea unflinching about tax on cryptocurrency
By Lee Kyung-min The government said income derived from trading cryptocurrency will be subject to tax as planned, clearing way for the 20 percent tax on the gains made via digital currency that long remained a windfall, tax-free investment.Deputy Prime Minister and Finance Minister Hong Nam-ki said digital assets can be recognized as financial assets, backed by the entire transaction records to be preserved for taxation purposes. “The cryptocurrency market with 500 trillion won ($433 billion) in annual trading volume has long remained outside the tax authorities' scrutiny. That will no longer be the case following a revision of a related law,” Hong said during a government audit of the ministry at the National Assembly, Thursday.The ministry will impose the tax after recognizing the gains as “other income,” an easier way for the government to levy the tax as opposed to property tax.Property trading-derived capital gains are calculated by the difference between the value purchased and value sold at a particu
