Politician: South Korean Tax Authority Unprepared to Collect Crypto Taxes
- The opposition lawmaker says the NTS is not even clear on their definition of non-fungible tokens.
The crypto tax law in South Korea is still causing controversy across the country, as an opposition lawmaker criticized the lack of resources from the local watchdog to collect these taxes. According to The Korea Times, Rep. Yoo Gyeong-joon of the main opposition People Power Party questioned the National Tax Service (NTS) for lacking an administrative infrastructure to ask for taxes on crypto gains.
In fact, Yoo accused Kim Dae-ji, Commissioner of NTS, of not having a clear answer about his view on non-Fungible Fungible Fungibility is a term that describes how interchangeable a certain asset is with other assets of the same kind.If an asset is fungible, one unit of that asset is interchangeable with another unit of that asset. Of note, fungibility differs from liquidity. A good is said to be liquid if it can be easily exchanged for money or another good. However, a good is fungible if one unit of the good is substantially equivalent to another unit of the same good of the same quality at the same time and place Fungibility is a term that describes how interchangeable a certain asset is with other assets of the same kind.If an asset is fungible, one unit of that asset is interchangeable with another unit of that asset. Of note, fungibility differs from liquidity. A good is said to be liquid if it can be easily exchanged for money or another good. However, a good is fungible if one unit of the good is substantially equivalent to another unit of the same good of the same quality at the same time and place Read this Term tokens (NFTs) on whether they should be taxed or not under the crypto tax law. “How can you say the authorities will be able to collect tax on crypto gains when the finance ministry and Financial Services Commission have yet to reach an agreement over whether NFTs are virtual assets or not? The public will not accept the government’s steamrolling tax gains if there is no clear definition for whether assets they own are taxable or not,” Yoo commented on Friday during an audit hosted by the National Assembly Economy and Finance Committee.
Moreover, the lawmaker mentioned that the Financial Services Commission (FSC) has been ‘struggling’ to provide a clear answer on the matter, implying that the watchdogs do not have solid guidelines regarding how the crypto tax law should be applied.
Latest Developments on Crypto Tax Deadline
Recently, Finance Magnatesreported that the Democratic Party of Korea was set to delay the plans to impose taxes on Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term gains ahead of the presidential elections next year. South Korea’s crypto tax law was introduced this year, specifically in October, but policymakers successfully postponed its enaction until January 1, 2022.
According to the new rules, the tax authorities will classify the new ruling on capital gains from crypto transactions traded during 2022 as ‘miscellaneous incomes.’ That said, digital asset holdings should be reported in yearly filings starting May 2023, as they will be subject to 20 percent tax. In addition, the taxation will apply to mining operations and income from ICOs, and the new laws proposed an amendment to classify digital assets as ‘commodities’ rather than ‘currencies’.
The crypto tax law in South Korea is still causing controversy across the country, as an opposition lawmaker criticized the lack of resources from the local watchdog to collect these taxes. According to The Korea Times, Rep. Yoo Gyeong-joon of the main opposition People Power Party questioned the National Tax Service (NTS) for lacking an administrative infrastructure to ask for taxes on crypto gains.
In fact, Yoo accused Kim Dae-ji, Commissioner of NTS, of not having a clear answer about his view on non-Fungible Fungible Fungibility is a term that describes how interchangeable a certain asset is with other assets of the same kind.If an asset is fungible, one unit of that asset is interchangeable with another unit of that asset. Of note, fungibility differs from liquidity. A good is said to be liquid if it can be easily exchanged for money or another good. However, a good is fungible if one unit of the good is substantially equivalent to another unit of the same good of the same quality at the same time and place Fungibility is a term that describes how interchangeable a certain asset is with other assets of the same kind.If an asset is fungible, one unit of that asset is interchangeable with another unit of that asset. Of note, fungibility differs from liquidity. A good is said to be liquid if it can be easily exchanged for money or another good. However, a good is fungible if one unit of the good is substantially equivalent to another unit of the same good of the same quality at the same time and place Read this Term tokens (NFTs) on whether they should be taxed or not under the crypto tax law. “How can you say the authorities will be able to collect tax on crypto gains when the finance ministry and Financial Services Commission have yet to reach an agreement over whether NFTs are virtual assets or not? The public will not accept the government’s steamrolling tax gains if there is no clear definition for whether assets they own are taxable or not,” Yoo commented on Friday during an audit hosted by the National Assembly Economy and Finance Committee.
Moreover, the lawmaker mentioned that the Financial Services Commission (FSC) has been ‘struggling’ to provide a clear answer on the matter, implying that the watchdogs do not have solid guidelines regarding how the crypto tax law should be applied.
Latest Developments on Crypto Tax Deadline
Recently, Finance Magnatesreported that the Democratic Party of Korea was set to delay the plans to impose taxes on Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term gains ahead of the presidential elections next year. South Korea’s crypto tax law was introduced this year, specifically in October, but policymakers successfully postponed its enaction until January 1, 2022.
According to the new rules, the tax authorities will classify the new ruling on capital gains from crypto transactions traded during 2022 as ‘miscellaneous incomes.’ That said, digital asset holdings should be reported in yearly filings starting May 2023, as they will be subject to 20 percent tax. In addition, the taxation will apply to mining operations and income from ICOs, and the new laws proposed an amendment to classify digital assets as ‘commodities’ rather than ‘currencies’.