Cryptocurrency Users to Incur 20% Tax Rate in South Korea

As per the latest reports, the legislators from South Korea have recently made a proposition. The proposition is in regards to the revision of the tax codes. As per the proposal from the legislators, the tax revision is to make room for cryptocurrency assets.

In the light of the above revision, the legislators aim to increase the severity of the actions taken by the authorities over tax evaders. The tax evaders being mentioned here are the ones who are hiding their cryptocurrency assets and trying to get away with them.

In the proposal, the legislative authorities have requested to be granted new permission. That permission is for the legislative authorities to be able to confiscate the cryptocurrency assets of the people who evade cryptocurrency taxes. The legislation has proposed that they should be given the authority to do it directly from the digital wallets of the tax evaders.

The reports reveal that the particular proposal was published by the legislative authorities on Monday, July 26, 2021. The form is not only directed towards the tax system around cryptocurrencies but covers the entirety of taxation in the country.

The form carries most of the data around the tax implementation and review of the policies surrounding countrywide taxes. The revision of the tax codes is not specifically due to the cryptocurrency assets. The legislative authorities in South Korea have come up with the amendment proposal following the increasing number of elder population in the country.

As a result of the surge in the elderly population in the country, welfare costs have experienced a significant rise. Therefore, the legislators have been making necessary changes to the tax codes in order to accommodate the rise of welfare costs.

This is the reason why the legislative authorities have demanded the revision of the taxes. In their proposal, they have demanded the rich and wealthy people in the country to pay more taxes versus the middle- and lower-class citizens.

They have also proposed similar kinds of implementations when it comes to companies and conglomerates. The legislative authorities have also requested to impose higher taxes on tax evaders as well as people involved in money laundering. When it comes to money laundering and digital asset tax evaders, the legislative authorities have pointed towards the cryptocurrency sector.

The authorities from South Korea have already implemented strict rules and regulations against cryptocurrency tax evaders. Until now, the regulatory authorities were confiscating the cryptocurrency assets of tax evaders through the cryptocurrency exchanges that were decentralized.

However, with the implementation of the revised tax laws, the regulators would be able to gain access to the personal wallets of the tax evaders.

 

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