South Korea Considers Classing Crypto Earnings as 'Other Income'
- This category includes honorarium income and prize winnings.
The South Korean government, struggling with its attempts to tax crypto earnings, is now considering classifying gains from digital asset trading as 'other income.'
Reported by local news outlet Pulse, the income tax department at the Ministry of Economy and Finance already began to review taxation plans for gains from virtual assets transactions.
Per the country’s tax laws, this category of income attracts taxation at 20 percent for 40 percent of the income, while the other 60 percent will be tax-deductible. Income from sources like a lottery or prize winnings falls under this category.
Capital gains to other incomes
This came when reports were pointing out that the ministry is mulling to impose capital gains tax on earnings from digital currencies, primarily trading.
When the Ministry of Economy and Finance is looking to put crypto income on the other income category, the Ministry of Finance and Strategy issued an official notice mentioning that crypto earnings cannot be taxed under the present laws.
“The finance ministry is yet to finalize its direction but it surely has become more likely for the income from virtual asset trading to be labeled as other income, not as gains from transfer of capitals like real estate properties,” an anonymous government source told the local publication.
If the recent proposal is imposed, the tax agency can tax on crypto incomes with an immediate effect.
The taxing debate in the country fueled last month when the National Tax Agency (NTS) ordered local crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Bithumb to pay $69 million in withheld tax. The step was highly criticized by the crypto industry as the agency did not have any clear assessment standard for crypto businesses.
Meanwhile, the exchange moved to tax tribunal appealing against the decision.
The South Korean government, struggling with its attempts to tax crypto earnings, is now considering classifying gains from digital asset trading as 'other income.'
Reported by local news outlet Pulse, the income tax department at the Ministry of Economy and Finance already began to review taxation plans for gains from virtual assets transactions.
Per the country’s tax laws, this category of income attracts taxation at 20 percent for 40 percent of the income, while the other 60 percent will be tax-deductible. Income from sources like a lottery or prize winnings falls under this category.
Capital gains to other incomes
This came when reports were pointing out that the ministry is mulling to impose capital gains tax on earnings from digital currencies, primarily trading.
When the Ministry of Economy and Finance is looking to put crypto income on the other income category, the Ministry of Finance and Strategy issued an official notice mentioning that crypto earnings cannot be taxed under the present laws.
“The finance ministry is yet to finalize its direction but it surely has become more likely for the income from virtual asset trading to be labeled as other income, not as gains from transfer of capitals like real estate properties,” an anonymous government source told the local publication.
If the recent proposal is imposed, the tax agency can tax on crypto incomes with an immediate effect.
The taxing debate in the country fueled last month when the National Tax Agency (NTS) ordered local crypto Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectively relevant with real-time pricing.Depending upon where you reside, an exchange may be referred to as a bourse or a share exchange while, as a whole, exchanges are present within the majority of countries. Who is Listed on an Exchange?As trading continues to transition more to electronic exchanges, transactions become more dispersed through varying exchanges. This in turn has caused a surge in the implementation of trading algorithms and high-frequency trading applications. In order for a company to be listed on a stock exchange for example, a company must divulge information such as minimum capital requirements, audited earnings reports, and financial reports.Not all exchanges are created equally, with some outperforming other exchanges significantly. The most high-profile exchanges to date include the New York Stock Exchange (NYSE), the Tokyo Stock Exchange (TSE), the London Stock Exchange (LSE), and the Nasdaq. Outside of trading, a stock exchange may be used by companies aiming to raise capital, this is most commonly seen in the form of initial public offerings (IPOs).Exchanges can now handle other asset classes, given the rise of cryptocurrencies as a more popularized form of trading. Read this Term Bithumb to pay $69 million in withheld tax. The step was highly criticized by the crypto industry as the agency did not have any clear assessment standard for crypto businesses.
Meanwhile, the exchange moved to tax tribunal appealing against the decision.