South Korea Introducing a 20% Crypto Mining Tax
Have you noted how most governments are launching clampdowns on the crypto industry? Indeed, in the last week, various administrations have shown their interests in the online trading business.
The South Korean government is imposing various regulations on the crypto industry. Will the situation change the trading game? If so, how? Keep in mind that many exchange platforms across different parts of the globe had to shut their doors due to failure to comply with the new rules. In today’s update, you will have to pay tax as a crypto-miner in South Korea, similar to digital product traders.
Does that come after the US government formulated various regulatory bodies to hunt cryptocurrency brokers operating illegally in the United States market the other day? Has Korean Government decided to follow the matching path?
Ruling to Take Effect in 2022
According to Donga’s report, cryptocurrency miners operating in the South Korean market need to be responsible taxpayers. If you are a crypto miner, you will pay the taxes from deducting your earnings.
South Korean financial officials want to bring another new rule into the trading game. With that, crypto miners earning tokens above $2,220 per year will face a 20% tax. What do you think about this rate as an investor or trader?
However, the authorities stated that, as a cryptocurrency miner, you could deduct your electricity from the total taxable income. A finance official told Donga that miners need to showcase the total virtual currency they have mined and the resulting electricity bill. To facilitate that, you will have to put your PC in a given place. That is according to the Korean financial ministry.
The regulators will consider your transaction fees on the tax policy. Moreover, to accomplish your crypto activities as a miner in the country, you will have to submit your tax declaration in May of every year. Your statement will have to indicate the details of assets mined in the previous financial year.
The new taxation rules might start operating in 2022 January.
For now, a lot is happening in the cryptocurrency industry. What do you think about crypto mining taxation in South Korea? You can leave your views below.
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