South Korea has finalized a new 20% tax rate for income generated from crypto trading.
The South Korean government has announced a 20% tax rate for income generated from cryptocurrency trading.
Following a Tax Development Review Committee meeting on July 22, the Ministry of Economy and Finance published its revised tax code detailing the new rules.
In a section headed, “Taxation on Virtual Asset Transaction Income,” the ministry introduced the new rules with a note that at present, both personal (resident and non-resident) and foreign corporations’ virtual assets are non-taxable.
The government states that introducing taxation for virtual assets is now necessary, pointing to the approach taken by other countries, where cryptocurrencies are already taxed under similar regimes for income from stocks and derivatives trading.
What the new crypto tax rules stipulate
Under the new framework, gains made from virtual currencies and intangible assets will be classified as taxable income, calculated annually.