South Korea finalizes its plan to charge 20% tax on crypto gains
July 22, 2020, 2:20AM EDT
1 min read
The government of South Korea has finalized its plan to charge a 20% tax on income generated from cryptocurrency transactions.
The country's Ministry of Economy and Finance amended its tax code on Wednesday, saying that an annual income of more than 2.5 million won (~$2,000) from crypto trading will be subject to a 20% tax for residents. Any income less than that amount will have no charge.
The revised tax code, which is subject to parliamentary approval, would come into effect from October 1, 2021. The ministry will submit the code for National Assembly approval before September 3.
South Korea had been planning to levy taxes on crypto income for over six months. The ministry has now finalized its classification of crypto gains as "other income" for tax purposes.