Tax experts from the Korean Tax Policy Association said profits made during cryptocurrency trading should be subjected to transfer income taxation; however, a low level of trading tax should be applied first.

According to a<a href="http://www.businesskorea.co.kr/news/articleView.html?idxno=41735" target="_blank" rel="noopener"> report</a> on February 24 by Business Korea, the experts advised the Korean government at a seminar held on February 21 that a low level of trading tax to profits from digital currency transactions should precede gradual transfer income tax application.
<h2>South Korean Government Will Include Crypto in Next Tax Reform Plan</h2>
This is coming at a time when the South Korean government is planning to impose<a href="https://www.cryptoknowmics.com/crypto/?p=155877" target="_blank" rel="noopener"> cryptocurrency taxation</a> into its tax reform plan for next year (2021). Meanwhile, the tax reform plan is scheduled to be announced by the government in the second half of this year (2020).

During the seminar, the Korean Tax Policy Association acknowledged that any profit made through<a href="https://www.cryptoknowmics.com/crypto/?p=158110" target="_blank" rel="noopener"> cryptocurrency</a> transactions should be placed upon transfer income taxation; however, it should be included through prior legislation.

To back up the idea, the Korea Blockchain Association explained in the report:
<blockquote>"Still, related laws are still absent, and the taxation infrastructure is still insufficient to cover cryptocurrencies, and, as such, some supplements need to be added on the expense calculation side."</blockquote>
The Korea Blockchain Association also suggested that the expense calculation improvement needs to be started from digital currency acquisition costs. In this way, it will be much easier to take up transfer income taxation after the trading tax imposition.

Notably, acquisition costs for digital currencies are difficult to clarify, given that they are being traded in different<a href="https://www.cryptoknowmics.com/crypto/?p=158529" target="_blank" rel="noopener"> crypto exchanges</a>. Moreover, related data and information are restricted as well. The Blockchain Association further noted that "Infrastructure needs to be established after case-by-case trading tax imposition."

By taking a low-level trading tax approach to profits on cryptocurrencies, the country's tax agency would be able to determine the acquisition costs for an effective imposition of transfer income tax on crypto-asset.

Tax Experts in Korea Advise Government on Low-Level Trading Tax to Cryptocurrency Profits

Tax experts from the Korean Tax Policy Association propose for a low-level trading Cryptocurrency tax on before actual transfer income tax.

Ibiam Wayas is an optimistic crypto news reporter who also enjoys tech writing. He is an introvert who spends much of his time on the internet studying facts that will help him excel in the digital/cryptocurrency space.

Tax Experts in Korea Advise Government on Low-Level Trading Tax to Cryptocurrency Profits

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