South Korea has finalized its plan to charge a 20% tax on cryptocurrency

The government of South Korea has finalized its plan to charge a 20% tax on income generated from cryptocurrency transactions.

The country’s Ministry of Economy and Finance amended its tax code on Wednesday, saying that an annual income of more than 2.5 million won (~$2,000) from crypto trading will be subject to a 20% tax for residents. Any income less than that amount will have no charge.

Under existing South Korea legislation, a 20 percent rate is levied on 40 percent of total other income; the remaining 60 percent can be tax-deductible. Currently, virtual currencies can be taxed under different schedules, with rates of up to 42 percent under capital gains.

South Korea’s Ministry of Economy and Finance has pushed for a new cryptocurrency tax regime for over a month now. A ministry spokesperson confirmed to The Korea Times in December a “revised bill” for enhancing the government’s ability to tax cryptocurrencies would be drawn up in the first half of 2020.

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