Topic: [2021-09-25]South Korean Taxman to Be Granted Right to Search Crypto Tax Evaders (Read 136 times)

Small difference.

The amount in SK refers to the profit, the 15k Euros limit in Slovenia is based on the amount, so even if you have made just 1k euros out of 20k invested you're going to file for taxes, and end up paying if the first proposal is passed 10% of that so it's 2100E. By comparison in SK, you will not pay in this situation.
On top of that, the second proposal in Slovenia is for a 25% tax on profit so obviously, this is going to be worse than SK.


It's around the standard in most countries for the lowest income brackets, if we speak of Europe and the highest tax rates it easily goes over 50% in some cases.
It's income? It is, then why should this not be taxed if others are?

That's that. We will all need to get used to the fact that government-set taxes on profits in cryptocurrency will have to be paid if we want to make money in cryptocurrency calmly and openly. I don't see anything wrong with that. The only question is the amount of such a tax. Twenty percent of the profit is decent, but in Japan this percentage reaches 49 and nothing, people work and pay taxes. But the cryptocurrency is legalized by the state and is under state and judicial protection.

I don't think that having such a surprise reaction is the best idea.

They're now forcing all the exchanges to essentially comply to unbelievably complex arrangements in a short period of time which is simply not going to happen.

If their motive is to restrict access to crypto then this is the perfect way to do it. But if it's to increase the tax revenue they get from crypto then this is definitely not the way to go.

20% is such an unfair number, if they're going to tax everyone then those at the lower end won't find crypto profitable since they're going to either wait and hodl for what they to grow or quit trading. Plus, why did they jump to the conclusion that crypto=tax evaders? The bigger tax evaders are their friends in high places, and they just want to divert the attention.

This is very interesting.

As long as they are pushing for positive regulation and adoption, I honestly don't see a problem with this.

Of course the tax sucks but I would rather have a situation like Korea than something like China with a flat out ban. The government just wants to cash in on the crypto craze, that's all.

If they really want to track all of those tax evaders, they have to be lite with their requirements towards their local exchanges. It's the key for them to attract those folks in able for them to have them track and tax them as they'll find it convenient using local exchanges.

But on the other hand, their government is also giving a bad sign of making hard compliance to the exchanges, and out of the many that are existing there, a lot have already stopped and won't pursue doing business because of it.

Maybe it is because SK is a strong ally of the US and even in regular finance they have been getting closer and closer to USA in terms of how they make regulations. So now even in the Asian part of the globe people cannot run from tax overseas. Still,,, I do not think it will reach the extent of IRS for many more years. Very strange move from SK who seemed to be crypto friendly before and yet now is making it very discriminatory. For sure this was political pressure from stock market players.

Since we're talking about a first-world country, then "yes" but I was wrong... I managed to find the answer to my own question, in another article from the same news outlet:

• Quote from: bryant.coleman on September 28, 2021, 08:31:54 AM
  I have no idea about Slovenia and this is the first time I am hearing that they have such a high threshold.
  
  You can refer to the following thread: Slovenian crypto tax proposition
  
  
  Quote from: bryant.coleman on September 28, 2021, 08:31:54 AM
  I am OK with this threshold. $2,100 is not a small amount and it is enough for the part-time investors to avoid paying taxes on their profits from crypto.
  
  You have a point, but how would you feel after reading the following parts as a crypto trader in South Korea?
  
  
  • Quote from: https://cryptonews.com/news/south-korean-ruling-party-squabbles-over-crypto-tax.htm
    The matter has been compounded by the fact that some traders claim the move is discriminatory – with stock market traders investing in KOSDAQ shares allowed to stick with a USD 42,000 threshold.
  • Quote from: https://forkast.news/south-korea-crypto-crackdown-regulations-take-effect/
    Backlash from crypto investors came swiftly. Many argued it was unfair, as crypto income is to be taxed over 2.5 million won, while stock capital gains are to be taxed from 50 million won, which is around US$42,400. Moreover, stock capital gains are to be taxed from 2023, a year later than crypto taxation.

LOL.. seriously? Do you really expect the governments to give a tax rebate of $25,200 per year? And that too in Asia? I have no idea about Slovenia and this is the first time I am hearing that they have such a high threshold. If this is true, then Slovenia may be the second paradise for cryptocurrency users (after El Salvador offcourse, and the added advantage is that you don't need to deal with gang violence as the case with the latter). I am OK with this threshold. $2,100 is not a small amount and it is enough for the part-time investors to avoid paying taxes on their profits from crypto.

Such is the beauty of bitcoin - nothing can be liquidated unless the owners allow it to be, by handing over their private keys to a third party such as law enforcement or a centralized exchange. Keep the coins in your own wallet with a secure password, and good luck to anyone who wants to try to brute force it to liquidate your coins against your will. If you are storing your coins on a centralized exchange then you are already taking the risk of having all your coins liquidated, frozen, or seized, against your will. Who exactly the third party who is doing that liquidation is more or less irrelevant. Don't want your coins to be liquidated against your will? Hold them in your own wallet.

Even better, stop using the centralized exchanges altogether, and trade exclusively peer to peer while holding your own private keys at all times. No forced liquidation, no ridiculous privacy invasion. Win-win.

Because having your coins forcibly liquidated is wrong? And sending bailiffs to your house to presumably search for and seize cryptocurrency wallets is just ridiculous.

Does anybody know if that's per month or per year?
^{- If it's the latter one, then it's really bad in comparison to Slovenia [€15K per year].}

I've seen worse!

Based on what I've read last week, one of the main issues was about forming a monopoly ^{[to a large extent]}!

I am OK with most of these proposed regulations on cryptocurrency transactions. It is not going to affect the small-scale traders, as profits up to $2,100 are not taxable. And even after this threshold, the tax rate is just 20% (less than half of what we have in our country). So I am not sure why so many people are protesting against these measures. All the exchanges in South Korea are KYC enabled and therefore the data is readily available with the government. And despite that, if someone try to evade taxes, then it is his problem.

Things are going from bad to worse for South Korean crypto investors. Fresh from seeing their crypto exchange options shrivel to just four, heavily audited platforms on Friday, they are now being told that if they seek to sidestep crypto trading profits reporting protocols, their coins could be liquidated – and bailiffs could be sent to search their houses.

Crypto is not yet taxable in South Korea, but as of January 1, 2022, all crypto profits above USD 2,100 will need to be declared, and traders will be forced to pay a flat rate of 20% on their earnings above this threshold.

In addition, local branches of the National Tax Service (NTS) have been executing a countrywide crackdown on individuals they suspect of making crypto buys in order to avoid declaring income. This initiative has seen millions of USD worth of tokens seized and in many instances liquidated by the NTS, which demands not only overdue tax bills, but also fines in some instances.

But, Maeil Kyungjae reported, the Ministry of Strategy and Finance confirmed that the government “recently submitted an amendment to the National Tax Collection Act” to the National Assembly.

The latter is almost certain to green-light the proposal, which will be bundled with other legal amendments and hurried through parliament in the coming weeks.

Read more https://cryptonews.com/news/south-korean-taxman-to-be-granted-right-to-search-crypto-tax-evaders-homes.htm