South Korean government faces series of crypto tax bills

Source: Adobe / weyo

South Korean lawmakers are flooding parliament with overdue crypto tax bills. National Assembly finance committees are expected to assess the values ​​of four separate attempts to derail Seoul’s plans to levy 20% capital gains tax on all business profits beyond one annual threshold of $ 2,100.

The government tried to dwell on the issue, after the National Assembly gave the green light to the new tax rule along with a package of other reforms earlier in the year. Since it was accepted, however, stock exchanges and private investors have expressed concerns about how the tax will be implemented. Some have argued that the tax is patently unfair, especially since KOSDAQ The profit threshold for stock market investors is currently $ 42,000.

Last week, Deputy Prime Minister and Minister of Finance Hong Nam-ki and Kim Dae-ji, head of National Tax Service (NTS), were toasted separately by the National Assembly’s Planning and Finance Committee on crypto-tax issues. Both argued that there was no way to delay the new tax (which is due to go into effect on January 1, 2022).

However, both men admitted that “practical difficulties” with the implementation of the tax still remained.

Meanwhile, at least three separate bills could further test the government’s resolve. The ruling Democratic Party is divided on the issue of the crypto-tax, and with elections looming in March 2023, passing unpopular tax levies could alienate young voters. A recent poll found that most South Koreans are in fact in favor of introducing a tax on crypto trading profits. More importantly, opposition to the tax was weakest among young respondents.

As the current government rose to power through a popular movement led by young people, the party is reluctant to alienate its once-staunch base of support, many of whom have embraced crypto in the past 12 months.

Electronic times reported that Cho Myung-hee, a member of the opposition People’s Power Cryptoasset special committee, proposed an amendment to the Income Tax Act that would delay the new tax by one year, would add it to the calculations of the income tax and would bring the reporting threshold to par with KOSDAQ stock trading levels.

Two of his fellow People’s Power MPs, Yoon Chang-hyeon and Yoo Kyung-joon, have also launched separate offers to defer the tax to 2023 and 2024, respectively.

And a fourth bill by Noh Woong-rae of the Democratic Party also proposed an income tax amendment that would defer taxation for one year and see crypto income classified as “financial investment income.” “.

The relevant committees will examine the four bills during the day, unless the authors decide to rationalize and combine their proposals.

Elsewhere, the Korea Customs Service vowed to issue another crypto “crackdown”.

KBS reported that the service wants to make legal changes and “push for revisions to the Customs Law” – impose more fines “for non-submission or false submission of customs data”.

He also wants new powers to allow him to seize the holdings of tax “cheats” who use crypto, and will seek to share information with the Ministry of Public Administration and Security.

The service warned it had to fight “price manipulation” – likely a reference to the “premium kimchi” traders it has sought to pursue in the past. These traders sought to exploit the difference between prices on national and international exchanges, buying bitcoin (BTC) and over-the-counter altcoins abroad, and then selling coins on domestic platforms.
Learn more:
– NFT tax and “practical difficulties” with the cryptographic tax in the spotlight in South Korea
– Pandora Papers Explains How World Elite Uses Legacy Funding To Hide Fortunes

– U.S. crypto tax loss harvesters make hay while the sun shines – but the clock is ticking

– South Korean tax authorities will be granted the right to search the homes of tax evaders
– IRS sends undercover agent to eliminate criminals in crypto market

Source Link

Please follow and like us: