The use of Taxation for South Korea for bitcoin
Han Guozheng is ready to use tax bitcoin, because bitcoin trading volume soared, more than three (Kosdaq). Han Shengxi, director of the State Administration of Taxation (Hanseung-hee) at the end of the week to lawmakers informed that are discussing how to better bitcoin encryption currency tax, including capital gains tax, value-added tax and gift tax etc..
The use of Korean tax bitcoin
In October 13th, South Korean lawmakers held the office of the State Administration of Taxation on Shizong (NTS) hearing. The new secretary NTS Han Shengxi answered questions about tax encryption currency, especially about bitcoin problems.
The Financial Times said: “with the virtual currency daily transaction value beyond the kosda range, we must actively respond to changes in the traditional reservation.” What is the tax plan? Then the new secretary Han Shengxi said:
“We are still in the tax on the income of the enterprise, I was discussing whether the bitcoin virtual currency and other value-added tax or capital gains tax.”
According to the South Korean tax bureau Han Shengxi said his department is currently working with the strategic and financial departments to discuss other encryption currency bitcoin value-added tax and capital gains tax. In addition, he also said, “the gift tax will be reviewed, because it needs to supplement.” The Commissioner pointed out that the use of bitcoin may lead to tax evasion, therefore, need to bitcoin and other monetary gift tax encryption privacy assessment.
At the same time, he confirmed, “we are currently monitoring (encryption currency) transaction state, and the rapid advance of bitcoin tax and other encryption currency measures.”
South Korea bitcoin and other encryption currency supervision work
“Bitcoin can be used for the purchase of goods, and use these bitcoin generated profits will be income tax constraint.” Japan said the State Administration of taxation:
“As a general rule, due to the use of bitcoin gains and losses (gains or losses due to get relative relationship with foreign currency or foreign currency and, unless) caused by different income (such as income) behavior related cases were classified as miscellaneous income.”
Director of Korea Taxation Bureau Han Shengxi said that “the United States is actively responding to the bitcoin virtual currency such as the asset tax”, and the trading profits tax. He said: “we in the bitcoin virtual currency such as the United States and Japan must be taxed as active.”
South Korea has been in the formulation of regulatory framework of digital currency. In August this year, congressman Pu Yongjin (Parkyong-jin) submitted a bitcoin regulatory bill, but did not take any action.
Regulators then held a meeting in early September, to discuss how to deal with digital currency. They put forward some measures, such as currency exchange allows encryption due diligence, and the implementation of more stringent verification procedures. In addition, the Ministry of science and technology and the Korea Communications Commission announced that they will conduct on-site inspection to include bitcoin exchange encryption currency service provider. Then, at the end of last month, the government announced in Korea for the first time all the coin (ICOs) have been banned.