Home Cryptocurrency South Korea to Impose a 20% Tax on Crypto Mining Activities – Mining Bitcoin News

South Korea to Impose a 20% Tax on Crypto Mining Activities – Mining Bitcoin News

by Serge Shlykov

Hey there! Before reading the article which is about South Korea to Impose a 20% Tax on Crypto Mining Activities – Mining Bitcoin News, you should read about bitcoin demand. It shares basic information about this article and also adds more value to it. Do let us know how you feel about it in the comment section below. Happy Reading! Really glad that you are here.

South Korea has declared that it will impose a 20% tax on cryptocurrency mining activities. This is a move to curb excessive speculation in digital currencies, the government said on Friday. The Ministry of Strategy and Finance and the Ministry of Trade, Industry and Energy issued a joint statement on the government’s plan to reduce the excessive speculation in cryptocurrency trading through a levy on virtual currency mining.

In a move that may further dampen enthusiasm for cryptocurrencies in South Korea, the country’s National Assembly has just passed a bill to impose a 20% tax on miners. The bill is expected to be signed into law by South Korean President Moon Jae-in within the next few weeks. In the wake of the bill’s passage, trading on one of the country’s largest exchanges, Bithumb, has dropped by as much as 45%.

The cryptocurrency industry in South Korea is still facing regulatory challenges, and it seems the dust is far from settling. Miners of cryptocurrencies must now pay taxes, following the same path as traders of digital assets.

to be regulated from 2022

According to a report published by Donga, minors should be responsible for paying taxes by deducting the amount from their income.

Officials at South Korea’s Ministry of Strategy and Finance plan to apply the new rule to those who earn more than $2,220 a year in chips and set a tax rate of 20 percent.

However, regulators have clarified that cryptocurrency miners will be able to deduct electricity from their total taxable income in their tax returns, as it is considered a necessary expense. An official from the Ministry of Strategy and Finance, quoted by Donga, said:

You have to prove how much virtual currency you gained by putting your computer in a certain place and how many electricity bills resulted from that.

Transaction costs on total income are also taken into account for tax purposes. In addition, miners of digital assets in the country are required to file tax returns in May each year indicating the value of virtual currencies mined in the previous fiscal year, the report said.

The new tax scheme could take effect from January next year.

Is taxation of crypto-currencies becoming a hot topic for the government?

South Korea is tightening its stance by imposing taxes on all crypto currency related activities. As Bitcoin.com News reported earlier this year, the government will impose a 20% tax on profits from virtual currency trading starting in 2022.

But financial regulators are also actively monitoring and identifying tax evaders who have not reported possession of cryptocurrencies on their tax returns.

For example, the Seoul city government recently seized $25 million worth of digital assets from hundreds of investors allegedly guilty of tax crimes.

This combination is being undertaken by some political parties to attract young voters to the upcoming presidential elections, as these measures have caused a negative reaction among this demographic in South Korea.

What do you think about the tax on cryptocurrency miners in South Korea? Let us know your comments in the section below.

Photo credit: Shutterstock, Pixabay, Wiki Commons

Denial: This article is for information only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any goods, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services referred to in this article.

This source has been very much helpful in doing our research. Read more about merrill lynch bitcoin and let us know what you think.

Related Tags:

bitcoin demand,china buys bitcoin,list of registered bitcoin mining companies,merrill lynch bitcoin,visa bitcoin,bitcoin news philippines,bitcoin investment,unionbank cryptocurrency

Related Posts