Taxation trends for cryptocurrencies
Currently, tax authorities consider cryptocurrencies not subject to VAT, but this interpretation is subject to sudden change as it does not have a clear legal basis.
Interpretation of the tax authorities (2021)
Inquiries
If a company mines cryptocurrencies such as Bitcoin and sells them to the market, is the supply subject to VAT?
Answer The supply of virtual assets is not subject to VAT.
Income related to cryptocurrencies
Corporate income is taxed like other income.Individual income is expected to be taxed, but implementation of the statute has been delayed.
Act on Protection of Virtual Asset Users, etc.
The above law will take effect from July 2024.
The law is expected to have the greatest significance in establishing a legal basis for financial authorities to intervene in virtual asset transactions. Therefore, once the above law is implemented, it is expected that financial authorities will become more active in regulating virtual assets.
GTI's support partner in Korea
JUDONG OH
Judong is a partner supporting the Korean section of "Global Tax Inside". He was in charge of tax affairs for foreign corporations as a senior manager at one of the Big 4 accounting firms, and is now working as an international tax partner at Daseung Tax Firm.