Taxes on cryptocurrencies, that's what South Korea has decided

Taxes on cryptocurrencies, that's what South Korea has decided. A new fiscal framework for a constantly evolving sector.

According to what has been announced, the South Korean government wants to announce a fiscal framework Related to cryptocurrency by the end of June this year, with the taxation that should enter into force, in the "new" guise, starting from 2019.

After the recent meeting of finance ministers held at this year's G20 summit, South Korea has indeed broken the delay and expressed the desire to present its cryptocurrency taxation plan alongside the G20 plan, intended to formulate recommendations for the regulation of the encrypted sector by July 2018.

According to the Korean magazine Financial News, the government is taking taxation of capital gains and other income taxes on cryptocurrency investors into its new tax plan. A ministry official said the following:

We don't have a specific calendar, but we're thinking of announcing a virtual money tax in the first half of the year.

A government report also suggested that

To tax income from a virtual currency transaction, you need to change the income tax law to add it to the category of taxable classes

thus suggesting, in essence, an adjustment of the existing tax legislation to include transactions of criptovaluta within its competence. The Tax Division of the Ministry of Information and Communication is expected to present a proposal to revise the tax law to the National Assembly in August of this year, thus paving the way for the taxation of cryptocurrency, which is expected to start in 2019.