South Korea has confirmed that income tax cannot be levied on individual investors’ profits from crypto transactions under the current tax law. The government, however, is reviewing international trends and the approaches of major countries to crypto taxation in an effort to amend the existing Korean tax law to include cryptocurrency.
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Crypto Gains Not Subject to Taxation
The South Korean Ministry of Economy and Finance, which oversees the country’s economic policy, has stated officially that individual investors’ crypto trading profits cannot be taxed under the current tax law. Not all capital gains from financial investments are subject to taxation in South Korea, and taxes cannot be imposed on income from activities that are not explicitly defined under the tax law. Since the term “virtual currency,” or any other term it is known by, is not included anywhere in the tax law, its transactions cannot be taxed. The ministry…