South Korea announced plans to levy taxes on encrypted currency users seeking to obtain transaction data from exchanges

nRunaway Commentary: On Tuesday, the 2017 National Tax Administration Forum (2017), co-hosted by the National Tax Administration Reform Committee of the National Tax Service and the Korea Institute of Public Finance, Tax Administration Forum) on its plans to tax cryptocurrencies such as bitcoin, and plans to force the cryptocurrency exchange to submit user transaction data, while also considering whether the tax code needs to be amended to do so.n
nTranslation: Clovern
South Korea’s National Tax Service announced plans to tax cryptocurrencies, including bitcoin. The agency is also exploring ways to force crypto currency exchanges to hand over their user transaction data.n
South Korea’s cryptocurrency tax plann

The National Agency for Tax Revenue (NTS) was announced on Tuesday by the National Tax Administration Reform Committee and the 2017 Korea National Public Finance Institute’s 2017 National Tax Administration Forum (National Institute of Tax Administration, Tax Administration Forum) announced a tax plan for cryptocurrencies such as bitcoin.n
“Korea Business” reported that NTS “decided to push forward the income tax and transfer of income tax on virtual currency plans.” “South Korea Times” quoted NTS officials in the forum said:n
n”We will be taxing virtual currencies such as bitcoin, which should be taxed on the principle of ‘income tax’ because the virtual currency belongs to assets such as real estate or securities.”n
nHank Kyung-soo, deputy director of the value-added tax department, underlined the importance of collecting “detailed historical data on both parties to the transaction and how the tax is traded.” If the agency was able to find a way to get the data, he said, “If this is done, it is possible to achieve full taxation.” To that end, he said:n
n”We are discussing with planning agencies such as the Ministry of Finance how to force the virtual currency exchange to submit transaction data.”n
Modify the tax lawn
Prof. Kim Byung-il, Department of Economics and Business Administration, Jiangnan University, pointed out that overseas advanced countries have imposed taxation on revenue and transfer income related to cryptocurrencies.n
He explained that although there is a need to set standards for classifying digital assets and measuring their fair value, “it is still possible to impose enterprise income tax, corporate tax, inheritance and gift tax without amending the law.” However, he considered it necessary to “amend the Income Tax Law or impose a transaction tax” in the case of transfer tax.n
NTS also said at the forum that it is necessary to amend the current tax law to levy income tax on the profits generated by the encrypted currency transactions.n
Not yet ready next year to amend the tax law on this issuen
Kim Dong-yeon, South Korea’s deputy prime minister and finance minister, held a press conference last week at the Sejong government office. He disclosed that tax issues such as cryptocurrencies such as bitcoin are still under discussion and Etoday quoted him as saying:n
n”We have not yet progressed to put this issue into the tax law revision next year.”n

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