Korea proposes 20% tax on crypto trading starting 2021

michellee

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Quote from: jademaxsuy on August 04, 2020, 03:19:32 AM

Quote from: michellee on August 04, 2020, 01:59:22 AM

I think the Korean government won't let people not pay the tax, and they will investigate every people, no matter if they use crypto or not to pay the tax. The tax is important to them to help the government grow the country's economy, especially after their country gets attacked by the Covid-19. I hope that the government can give a fair tax to their people so they will not be a problem for everyone who has an income from the crypto trading.

Yeah they will go and file a case against those individuals that will going to violate or evade tax for it. And not only the small time violatora they will going to pursue but the government should after the big one or high profiles doing bitcoin trading. This is a good start for bitcoin industry and it will be a worldwide like betting where funds around the world will be distributed in accordance on how good a the people of that certain country do the trading.

I think it is easy for the government to track people who don't pay the tax or if they want to violate the law because I am sure that the government will have their data. People will not be afraid if they're going to do trading because they can now be protected from the law, and that can make crypto adoption grow.

Quote from: Alobo Realer on August 04, 2020, 01:41:40 PM

This is no sad news if viewed from a different perspective other than the high tax rate. It would give the crypto traders legit license to keep on to their business and the use of cryptocurrency in the country. After paying the required tax for a couple of years, it will become like a common thing and the full advantage of them paying the tax will become so obvious.....

My advice to the investors is that they should accept what is before them; to pay the tax, so they live to smile in the near future as it will be a legalized way of payment and transactions with cryptocurrency just like every other system of the economy.

Besides that, with paying the tax, it can attract many new crypto traders or exchanges that will launch because their business now can take attention from the government, and people themselves will see that cryptocurrency can be one of the commodities or asset to them. I think the government will calculate how much they need to pay the tax, and I am sure that there is a range between the profit that they earn, so they will not have jealousy between them.

Alobo Realer

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Quote from: TNA on July 21, 2020, 08:36:09 PM

It's been a long time coming but it looks like they're finally here. Crypto taxes in South Korea.
Took them long enough. Honestly they don't look that bad. it's better than the capital gains threat that was being thrown around for a while.
20% on gains, minimum threshold is $2k/year, filed under income tax, starting October 2021.

https://thenews.asia/korean-crypto-tax-amendment-sent-for-review/

This is no sad news if viewed from a different perspective other than the high tax rate. It would give the crypto traders legit license to keep on to their business and the use of cryptocurrency in the country. After paying the required tax for a couple of years, it will become like a common thing and the full advantage of them paying the tax will become so obvious.....

My advice to the investors is that they should accept what is before them; to pay the tax, so they live to smile in the near future as it will be a legalized way of payment and transactions with cryptocurrency just like every other system of the economy.

South Park

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Quote from: bits4books on July 31, 2020, 03:22:47 AM

Amazing! The state integrates cryptocurrency into the economy but everyone is dissatisfied with this because now it necessary to pay taxes!
And they do not want to accept the fact that this is a kind of contract price
I think this is a fairly simple rule that has been working for a very long time - if you want to do [something] with [something] in the country, then you will have to pay for it in the country itself. At least in exchange for protection. I do not see anything wrong with this, given that the crypto is really now not a coin and more fin tool.

While true no one is ever happy to pay more taxes to the government especially if you were paying no tax before so the reaction is justified, and while some members have given examples of other countries in which you need to pay even more taxes the truth is that 20% still seems excessive to me, the government takes no risk unlike the trader, when the trader lose the government does not lose a thing but when he wins they want 20% of the cut for doing nothing, and that is the truth as just a little while ago they charged not taxes so it is not like they are offering you more protection or anything.

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Quote from: Mauser on August 04, 2020, 01:00:49 AM

Quote from: TNA on July 21, 2020, 08:36:09 PM

It's been a long time coming but it looks like they're finally here. Crypto taxes in South Korea.
Took them long enough. Honestly they don't look that bad. it's better than the capital gains threat that was being thrown around for a while.
20% on gains, minimum threshold is $2k/year, filed under income tax, starting October 2021.

https://thenews.asia/korean-crypto-tax-amendment-sent-for-review/

Unfortunately it was only a matter of time until countries start to tax crypto currencies. I think 20% is a little harsh, they could have easily started 10% and see their effects. Given that many countries don't have such high taxes yet, people might be inclined to switch to different exchanges outside of Korea. As with investing, taxes will play a big role in the future of cryptocurrencies. Losing out on 20% is very huge.

Government always look for benefits, if they'll see that this implemented taxes will work then expect for more to come.

It's always possible that this la will be adopted by other countries if this will successfully helps S.Korea in terms of collecting much higher taxes, we all knew that crypto is well adopted from S.Korea and if other countries also wanted to deal with it then expect that they will do the same.

Taxes will also let the government to look forward in embracing this system.

fiulpro

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Quote from: TNA on July 21, 2020, 08:36:09 PM

It's been a long time coming but it looks like they're finally here. Crypto taxes in South Korea.
Took them long enough. Honestly they don't look that bad. it's better than the capital gains threat that was being thrown around for a while.
20% on gains, minimum threshold is $2k/year, filed under income tax, starting October 2021.

https://thenews.asia/korean-crypto-tax-amendment-sent-for-review/

Government is pushing it's citizens to actually use underhanded methods to hide the money they earn in cryptocurrencies and such , this way it will just increase the black market and money laundering in cryptocurrencies .

20% tax is not at all justifiable!!

-They should at least take consent of their citizens before doing something like this .

_*_

People often say that *Cryptocurrency is easy money* but unfortunately they don't know how hard it is to keep a track of everything that is going on with the market then comes the loss factor.

The market is highly volatile and with a biased Government they would for sure push it's citizens away from the trading of cryptocurrencies itself.

_*_

Plus for people commenting about the tax on the transactions.

Why ?

Why should there be any tax on cryptocurrencies ?

- It's Decentralized!! , The Government is not involved with anything in this area , transactions are already very high priced, claiming property of citizens is what the Government is doing.

jademaxsuy

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Quote from: michellee on August 04, 2020, 01:59:22 AM

Quote from: khunyung on August 03, 2020, 11:13:09 PM

Quote from: leea-1334 on July 22, 2020, 06:44:20 AM

It is not bad at all,,, I think I already saw this news though and I commented that it sounds like a really low price for tax if I am honest. Imagine if I manage to get my 1 BTC safe and Bitcoin hits 100,000$! I would be SO happy to pay 20,000$ as tax and happily keep the rest free and no need to worry. Good rate I must say.

Especially if there is no tax on crypto transactions whatsoever, then its a really great deal.

I think the Korean government won't let people not pay the tax, and they will investigate every people, no matter if they use crypto or not to pay the tax. The tax is important to them to help the government grow the country's economy, especially after their country gets attacked by the Covid-19. I hope that the government can give a fair tax to their people so they will not be a problem for everyone who has an income from the crypto trading.

Yeah they will go and file a case against those individuals that will going to violate or evade tax for it. And not only the small time violatora they will going to pursue but the government should after the big one or high profiles doing bitcoin trading. This is a good start for bitcoin industry and it will be a worldwide like betting where funds around the world will be distributed in accordance on how good a the people of that certain country do the trading.

michellee

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Quote from: khunyung on August 03, 2020, 11:13:09 PM

Quote from: leea-1334 on July 22, 2020, 06:44:20 AM

It is not bad at all,,, I think I already saw this news though and I commented that it sounds like a really low price for tax if I am honest. Imagine if I manage to get my 1 BTC safe and Bitcoin hits 100,000$! I would be SO happy to pay 20,000$ as tax and happily keep the rest free and no need to worry. Good rate I must say.

Especially if there is no tax on crypto transactions whatsoever, then its a really great deal.

I think the Korean government won't let people not pay the tax, and they will investigate every people, no matter if they use crypto or not to pay the tax. The tax is important to them to help the government grow the country's economy, especially after their country gets attacked by the Covid-19. I hope that the government can give a fair tax to their people so they will not be a problem for everyone who has an income from the crypto trading.

Mauser

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Quote from: TNA on July 21, 2020, 08:36:09 PM

It's been a long time coming but it looks like they're finally here. Crypto taxes in South Korea.
Took them long enough. Honestly they don't look that bad. it's better than the capital gains threat that was being thrown around for a while.
20% on gains, minimum threshold is $2k/year, filed under income tax, starting October 2021.

https://thenews.asia/korean-crypto-tax-amendment-sent-for-review/

Unfortunately it was only a matter of time until countries start to tax crypto currencies. I think 20% is a little harsh, they could have easily started 10% and see their effects. Given that many countries don't have such high taxes yet, people might be inclined to switch to different exchanges outside of Korea. As with investing, taxes will play a big role in the future of crypto currencies. Losing out on 20% is very huge.

maxdin

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Quote from: Nhor1011 on July 31, 2020, 08:36:21 AM

I think Korea will put taxes through crypto exchanges. So it means every Korean crypto exchange will required KYC and that will be the basis of Korean government because they can't put taxes to individual person because cryptocurrency is decentralized and government has no control on it. It means there is a transparency between the Korean government and to all crypto exchanges on their country.

I personally don't see another option for them to implement this taxation.
Its a good thing anyway, because you pay for your crypto to be fully legal which is nice

khunyung

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Quote from: leea-1334 on July 22, 2020, 06:44:20 AM

It is not bad at all,,, I think I already saw this news though and I commented that it sounds like a really low price for tax if I am honest. Imagine if I manage to get my 1 BTC safe and Bitcoin hits 100,000$! I would be SO happy to pay 20,000$ as tax and happily keep the rest free and no need to worry. Good rate I must say.

Especially if there is no tax on crypto transactions whatsoever, then its a really great deal.

STT

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Quote

Korea is fast growing economy with this taxation is very important

Fast growth in an economy comes from trade and taxation is an impediment to that and slows the economy as well as losing money to the inherent inefficiency in government, it also helps to make the country uncompetitive internationally. The only real excuse for taxation is to reduce debt which aids stability and can improve prospects long term. Since we live in an age of high debt and government over spending I doubt this is their intention.
Trading taxation should be separated from personal income and company taxation which rely on steady profits realised. To tax trading itself is a failure like like leaving brakes on while driving, theres no benefit to direction tax on trade done for international assets such as crypto. If they want to regulate industry and tax those nationally based enterprise thats something else I guess.

Sherry_Crypto

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Korea has a well-developed Crypto community, they also focus on Blockchain technology development and implementation.
20% is a supposed to be a low level tax, as income tax vary from 35% to 42% (progressive scale).

wowz2010

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Quote from: TNA on July 21, 2020, 08:36:09 PM

It's been a long time coming but it looks like they're finally here. Crypto taxes in South Korea.
Took them long enough. Honestly they don't look that bad. it's better than the capital gains threat that was being thrown around for a while.
20% on gains, minimum threshold is $2k/year, filed under income tax, starting October 2021.
https://thenews.asia/korean-crypto-tax-amendment-sent-for-review/

20% is a fair game imo, but only if its an only taxation I mean without any additional taxes whatsoever.
If thats the case - I am glad that there is at least one country with adequate legal status of crypto

Vishnu.Reang

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Quote from: Nhor1011 on July 31, 2020, 08:36:21 AM

I think Korea will put taxes through crypto exchanges. So it means every Korean crypto exchange will required KYC and that will be the basis of Korean government because they can't put taxes to individual person because cryptocurrency is decentralized and government has no control on it. It means there is a transparency between the Korean government and to all crypto exchanges on their country.

I have accounts with several of the Korean exchanges, and I can say that KYC was already mandatory for these exchanges even before the new law was passed. In both Japan and South Korea, the regulation is quite strict and they want to make sure that no money laundering activity is conducted through the exchanges using either cryptocurrency or fiat cash.

coolcoinz

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I'm against taxation in any form. 20% might be fine in countries where there's no VAT, but 20% of capital gains on top of your 10% VAT in Korea is already close to one third of your income. Still rather lenient when compared to some EU countries like France where the state basically rips people off in any way it can.

MCobian

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No wonder the South Korean economy is growing faster, it turns out that almost all sectors are taxed. Including crypto trading
will be affected 20% tax starting next year. There are positive and negative things for the citizens of South Korea related to this,
the positive thing means cryptocurrency already guaranteed legality. And the negative thing for traders with 20% profit cuts to
pay taxes is quite large.

Lorence.xD

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Quote from: Argoo on August 01, 2020, 10:45:21 AM

Finally, South Korea has decided on the size of the tax on profits from activities in the cryptocurrency. Twenty percent of the profit, if it exceeds $ 2,000 a year, is not that much. There are states that have set a much higher interest rate, and there is where it is lower. It should be borne in mind that governments are still experimenting: after all, if the tax is set too high, then people will evade payment, given that transactions with cryptocurrency are very difficult to track. Therefore, the amount of the tax will still change. The main thing is that the cryptocurrency continues to be legalized by states.

20% is a big number for taxing crypto enthusiast, would it apply to all crypto holders because that would mean that small scale crypto traders will have to suffer from this tax cuts, isn't the point of cryptocurrency is to become medium for free market? The thing about this is that cryptocurrency is sometimes the only way this people are earning their living which means that not all can afford to have that tax cuts, all government should have a very clear plan right now when it comes to cryptocurrency regulations because each time that they antagonize cryptocurrency means that they are slowly pushing away their citizens.

verita1

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The answer from the crypto community in South Korea is here:

Quote

"Korean investors in a popular crypto-related chat room comment that the new tax proposal for cryptocurrency at 22% is" crazy "."
This post is from 2020-01-20
https://thenews.asia/trade-cryptos-pay-taxes/

Only lawmakers reduced the tax by 2% for some crypto investors the solution is to emigrate to a crypto paradise country before the law takes effect such as Singapore, Switzerland, and Germany.

Argoo

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Finally, South Korea has decided on the size of the tax on profits from activities in the cryptocurrency. Twenty percent of the profit, if it exceeds $ 2,000 a year, is not that much. There are states that have set a much higher interest rate, and there is where it is lower. It should be borne in mind that governments are still experimenting: after all, if the tax is set too high, then people will evade payment, given that transactions with cryptocurrency are very difficult to track. Therefore, the amount of the tax will still change. The main thing is that the cryptocurrency continues to be legalized by states.

iv4n

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Quote from: Nhor1011 on July 31, 2020, 08:36:21 AM

I think Korea will put taxes through crypto exchanges. So it means every Korean crypto exchange will required KYC and that will be the basis of Korean government because they can't put taxes to individual person because cryptocurrency is decentralized and government has no control on it. It means there is a transparency between the Korean government and to all crypto exchanges on their country.

Korea is one of the advanced countries, with top infrastructure, I do not doubt they will find a way to tax crypto traders in their country, but internet is a big place, some Koreans will find a way to stay under the greed and trade anonymously, or at least they will try doing that. In some countries people pay tax on crypto for years, and in some countries like mine is government is still far away from creating some crypto regulations, which I think is good for me, even when they come up with some rules I will try to stay anonymous as long as I can!

Topic: Korea proposes 20% tax on crypto trading starting 2021 (Read 521 times)