Category Taxation in South Korea

Korea Clamping Down on Cryptocurrency

December 14, 2017 Taxation in South Korea

litecoinSEOUL – Korea’s booming cryptocurrency market may come to a halt due to the government’s planned restrictions.

The government of South Korea has announced that it will take active measure to help quell dangerous speculation and abuse of cryptocurrencies.

Over the last week the international prices for cryptocurrencies have seen wild swings, which have been magnified in South Korea due to the popularity of such technology in the country.

During the course of a few weeks, the price of Bitcoin, the most popular coin in South Korea, has swung from KRW 14 million to KRW 25 million per coin.

The government has now announced that it will restrict access to cryptocurrencies and cryptocurrency based accounts in Korea, specifically banning minors and non-residents from accessing coins in South Kor...

Read More

Seoul Wants Income Tax on Bitcoin

December 7, 2017 Taxation in South Korea

cryptocurrencySEOUL – Korean taxpayers love cryptocurrencies, and the government is hoping to cash in with an income tax on digital coins.

During the National Tax Administration Forum in Korea earlier this week, Kim Byung-il, a professor of the economics and taxation department at Kangnam University, called on the government to create a comprehensive framework for the taxation of cryptocurrencies.

Korea is currently one of the hotbeds of cryptocurrencies, with many coins trading at a significant premium on local exchanges.

The government was called on to thoroughly research and implement a tax on incomes garnered by Korean taxpayers on the sale of cryptocurrencies.

Systems would also need to be implemented to ensure that taxpayers are not able to avoid their income tax obligations by obfuscating the...

Read More

South Korea to Tax Vapes

October 31, 2017 Taxation in South Korea

Vape taxSEOUL – E-cigarettes and other cessation devices may soon be taxed the same as cigarettes in Korea.

The government of South Korea is mulling a change in tax legislation which could see a significant spike in the price of-cigarettes.

In November this year, lawmakers are expected to vote on a bill to enact a 90 percent tax on the sale of e-cigarettes and heat-not-burn cigarettes.

The tax will roughly match the tax treatment of regular cigarettes and tobacco products.

If the measure is approved, it could come into effect as early as December this year.

E-cigarettes have proved to be highly popular in South Korea, with imports of e-liquids rising from 12 tons in 2015 to 61 tons in the first eight months of 2017.

Some industry experts noted that over the last few years, the government has e...

Read More

South Korea Eyes Robot Tax

August 9, 2017 Taxation in South Korea

Robot taxSEOUL – The government of South Korea could be the first one in the world to implement a “robot tax”.

The government of South Korea is mulling extending a tax break available for businesses investing in automation technology, but reducing the rate of the deduction.

Currently, any business in South Korea which invests in industrial automation technology is eligible to receive a corporate tax deduction of 3 percent to 7 percent, with the exact rate varying based on the scope and size of the business in question.

The policy is currently scheduled to end this year.

However, the government is now mulling the potential implications of extending the program out until the end of 2019, but reducing the rate of the deduction by 2 percent
.
Some experts have dubbed the potential move as a “robot t...

Read More

Family Tax Breaks Cause Disparity in S.Korea

November 24, 2016 Taxation in South Korea

Tax breaks for Korean families with childrenSEOUL – Efforts by the government of South Korea to boost the national birthrate through tax breaks have led to a growing divide between the taxes paid by families and single people.

Tax benefits available to couples with children in South Korea have effectively increased the disparity between taxes paid by families and single taxpayers in the country, according to the results of new research released in the journal of the Korea Academic Society of Taxation.

South Korea has several tax breaks available for families with children, with the breaks being cumulative for more than one child.

The tax measures were enacted in order to counter the country’s dwindling birth rate, which currently sits at approximately 1...

Read More