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South Korea plans to impose taxes on Bitcoin adopters

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South Korea's National Tax Service (NTS) imposes a framework for taxing crypto currencies, including bitcoin.

Under the tutelage of the Korean Ministry of Strategy and Finance, the National Tax Service is responsible for assessing and collecting internal taxes in the country. While South Korea ranks among the world's leading bitcoin and cryptocurrency trading markets, the tax administration is pursuing its plan to tax income and tax revenues. 39, a transfer of income on cryptocurrencies.

According to a report from Business Korea, the tax plan was discussed at the National Forum for Tax Administration of yesterday, organized by the NTS. Kim Byung-il, professor of economics and taxation at the University of Kangnam addressed "various tax issues", including the legal classification of cryptocurrencies to "determine whether or how to impose taxes as a tax on added value."

The academic, speaking at the forum co-organized by the Reform Committee of the National Tax Administration of Korea and the Institute of Public Finance of Korea, called the government to examine "thoroughly" the legal status of cryptocurrencies and their imposition in other countries. :

[T] The government must specifically establish a detailed tax standard and introduce the system of registration of trade [cryptocurrency] and an identification system to prevent tax evasion.

The report also quotes a representative of the NTS stating that the authority "is considering improving the [tax filing] systems," a decision that would make it mandatory to submit cryptocurrency transactions in any business.

The NTS agent stated:

The basic principle is to tax income. It is important to collect detailed data on the history, for example, who has made transactions and how to impose taxes. To this end, we are considering improving systems.

As reported last week, South Korea's Financial Regulatory Authority is about to release final regulatory proposals for bitcoin and cryptocurrency exchanges that would require them to operate under specific directives.

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