Category Taxation in South Korea

Alipay Allows Tourist Tax Refunds

August 23, 2018 Taxation in ChinaTaxation in South Korea

Alipay tax refundSEOUL – Alipay, the world’s largest mobile payment network, is now leading the way for mobile tax refunds for tourists.

In a press release earlier this week, the mobile payment network announced that it is launching the first digital tax refund service in the world.

The new service will be open to tourists from China who have made purchases while visiting South Korea for tourism purposes.

With the new system, tourists using the Alipay system can skip the customary visit to the tax-refund kiosk and counter.

All that users will need to do is scan their passport at a specified location prior to departure.

At any point within 90 days of eligible purchases being made, the tourist can scan their tax refund receipts into the Alipay app, and the tax refund will be credited to them directly and ...

Read More

S.Korea Hands Tax Breaks to Tech Startups

July 19, 2018 Taxation in South Korea

tax breaks on r&dSEOUL – South Korea is extending tax breaks to innovative startups doing research and development.

On July 18th the government of South Korea indicated that it will soon enact new tax breaks for businesses which make investments into research and development of new technologies.

So far 157 specific technologies across 11 operational areas have been defined as “new-growth technology” which will fall under the scope of the tax break.

Under current rules for tax breaks for R&D, companies are eligible for tax reductions if they allocate at an amount which is equivalent to 5 percent of the previous year’s sales to research and development, with at least 10 percent of the amount dedicated to new growth technology.

However, it has been suggested that the rules may be amended for this yea...

Read More

S.Korea To Issue Crypto Guidelines

April 3, 2018 Taxation in South Korea

cryptocurrency in South KoreaSEOUL – South Korea is aiming to enstate some control and taxation over the cryptocurrency market by mid-2018.

Over the weekend the government of South Korea announced that it will soon enact new rules regarding the taxation of virtual currencies.

Virtual currencies such as Bitcoin have enjoyed immense popularity in South Korea in 2018 and 2017, with astronomical demand and surge pricing for purchases in the country.

The government has tried to reign in the popularity and uncontrolled growth for the cryptocurrencies over the last 12 months.

By the end of June 2018, the government hopes to issue a guideline on the taxation of profits made from cryptocurrencies, whether it be from issuance, mining, capital gains, or from transactions.

No indication yet has been given on what the guideline...

Read More

S.Korea Launches Tax on Cryto Exchanges

January 23, 2018 Taxation in South Korea

Cryptocurrency tax South KoreaSEOUL – Cryptocurrency exchanges in South Korea are about to feel a tax sting, as the government steps up to control the country’s rampant coin market.

Earlier this week the government of South Korea announced that cryptocurrency exchanges in the country will have to pay income taxes, and, also, that the income taxes will apply retroactively to previous profits.

Cryptocurrency exchanges will face a 22 percent tax on corporate profits and an additional 2.2 percent local income tax.

However, the tax will only apply if the exchange saw an annual income exceeding KRW 20 billion.

The taxes will not only apply to future profits but also to those profits garnered over the last year.

The corporate income tax will need to be paid by March this year, while the local income tax will be due in April...

Read More

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