Category Taxation in South Korea

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...

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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...

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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...

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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...

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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...

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