South Korea Crypto Tax
From 2022 An Expected South Korea Crypto Tax To Apply To Crypto Miners In The Country
A recent report from local site Donga has indicated that Crypto miners will be facing taxes from 2022 onwards.
Officials from the South Korean Ministry of Strategy and Finance are expected to implement a % tax rate for those who earn over $2,200 from their Crypto mining activities. This matches the 20% tax that was announced on Crypto trading profits earlier this year to come into effect in 2022. The 20% tax on trading also has the same threshold of annual earnings (around $2,200).
The South Korea Crypto tax on miners will allow them to offset expenses against the 20% tax, however. The electricity cost for mining for instance is considered a necessary expense. An official from the Ministry of Strategy and Finance stated:
“You have to prove how much you have mined the virtual currency by putting your computer in a specific place and how much the electricity bill came out.”
Transaction fees from the total income will also be taken into account. Crypto miners are expected to submit their tax declarations each year in May and specify the value of the Cryptocurrencies mined over the last financial year.
What do you think about the South Korea Crypto tax? Is it fair to tax miners and traders at the same 20% rate? Let us know in the comments below.
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