South Korea levys a 20% tax on crypto profit in accordance with new regulation

South Korea introduces 20% tax on profit got from buying and selling crypto after the government has adopted this initiative

South Korean government has clearly defined the crypto tax

The decision has been adopted after several months of discussions.

According to notification of making amendments to tax regulation published on July, 22nd, the ministry of economy and finances announced that the total income from digital assets lower than 2.5 million won per year (about $2000) would not be taxable.

The annual income above this range will be subject to 20% taxation, says the report. This equates crypto to other taxable incomes in Asian country, even if it is not considered as a capital gain.

In South Korea profit received from transactions with Bitcoin and other digital assets is classified as “other type of income” just like in Japan.

According to the new rules, the tax would be also collected from investors living outside South Korea and from foreign companies trading at local exchanges. It is expected that stockbrokers will take taxes out of the profit for from trading on behalf of Korean Tax Agency.