South Korea Plans on Taxing Cryptocurrencies and it does not need a New Law
South Korea plans on imposing some taxes on the cryptocurrency market and there is no secret in that. The country has previously revealed intentions to regulate the cryptocurrency market and authorities also conducted some raids at exchanges on concerns of tax avoidance.
One of the main reasons why authorities were not able to do too much on the area of taxes was linked to the lack of regulation.
However, it now seems that South Korean authorities do not actually need regulation to be able to impose some taxes on the cryptocurrency market. It has now been revealed that they plan on introducing some taxes covered by the current laws.
Some types of taxes can be applied on the cryptocurrency market
The announcement was made by the country's government, which claimed that there are certain types of taxes that can be applied on the cryptocurrency market with no need to make changes to the legislation.
Of course, this does not mean that changes will not follow. As previously reported, South Korean authorities are currently working on regulations for the cryptocurrency market.
The new laws will most likely be finalized in the first half of the year. Reportedly, the authorities are planning on introducing other taxes, as well, but the current legislation does not allow them.
The fact that there are some taxes that can be imposed under the current law was revealed by Choi Young-rak, the head of the tax department of the Ministry of Strategy and Finance. He was reportedly mostly referring to corporate tax which can be imposed at the moment.
Choi also gave some insights into the activity of The Virtual Currency Taxation Task Force, which was created after the release of some country measures for regulation on the cryptocurrency market. Choi revealed that the group had its first meeting, which was attended by several experts. It is yet to see how many taxes the South Korean government will include in its upcoming legislation.