South Korean Cryptocurrency Exchanges May Lose Tax Exemptions
August 6, 2018
South Korean authorities announced the proposal of new law amendments, that would deprive local cryptocurrency exchanges from their current tax exemptions
Amendments were introduced on June 30. It the National Assembly of South Korea approve the amendments, cryptocurrency exchanges will lose their eligibility for tax exemptions, that has small and medium businesses in the country. The government believes that the business of cryptocurrency exchanges does not create added value, therefore they should not receive any tax benefits.
At the moment, all South Korean cryptocurrency exchange are either venture companies, small-sized businesses, or medium-sized businesses. According to a report by Seoul Finance, cryptocurrency trading platform pay a 22% corporate tax. It also said that due to the large amount of cryptocurrency trading, the amount of tax exemptions is considerably large.
South Korean government also want to introduce a profit tax on cryptocurrency transactions for traders from 2019.