[2017-10-16] South Korea will impose Bitcoin tax

[d5000]

Some here should really read the article. There would not be a separate "Bitcoin tax", but:

The current plan includes taxation of capital gains, imposing VAT, and gift tax

That would mean, like @entrepmind23 already supposed, that they would treat Bitcoin like other financial assets. In Germany for example, it's similar, too.

There would be nothing special about BTC: If you hold/trade Bitcoin (like a stock) and make profits, and these are larger than a possible "tax-free profit", then you must pay capital gains tax. Or if you're a merchant and sell a good or service for Bitcoin, then you must charge VAT.

And with respect to "they cannot track it": It would be similar as with cash. If they detect large movements and suspect you to hide them, they could request a raid and analyze your computer(s) for possible wallets.

[Qartersa]

I don’t understand why there is a separate demand about bitcoin tax. Bitcoin is money. You don’t tax money. You tax income. People who make profits using bitcoin should pay taxes on their gains.

I agree. However, the government from various jurisdictions will have the problem on how they will effectively regulate Bitcoins especially so that all transactions happen online. Surely they will have a difficult time trying to access each and everyone's Bitcoin accounts on the pretext that they will tax all those who earn income out of it. In such case, they would need to pour a huge amount of money to come up with a tracking software otherwise, there is nothing much they can do. A good regulation without a corresponding implementation is worthless.

[oficman]

Any income its either active or passive income are subject for tax. Bitcoin is a form of asset and investment and it is a passive income. South Korea has the right to implement tax for bitcoin as long as their transaction is within its territory. Taxes help improves the economics status of the country.

It is better that there really is a clear law of taxation, than the profits from the digital currency market will be taxed repeatedly.

[darkangel11]

Some here should really read the article. There would not be a separate "Bitcoin tax", but:

The current plan includes taxation of capital gains, imposing VAT, and gift tax

That would mean, like @entrepmind23 already supposed, that they would treat Bitcoin like other financial assets. In Germany for example, it's similar, too.

There would be nothing special about BTC: If you hold/trade Bitcoin (like a stock) and make profits, and these are larger than a possible "tax-free profit", then you must pay capital gains tax. Or if you're a merchant and sell a good or service for Bitcoin, then you must charge VAT.

And with respect to "they cannot track it": It would be similar as with cash. If they detect large movements and suspect you to hide them, they could request a raid and analyze your computer(s) for possible wallets.

Think about it for a moment. They are checking your computer and find an encrypted wallet. They ask you what's on it and yuu deny to provide a password. There's a suspicion you might be hiding income but there's no proof, can't do much about that unless you live in a communist country where they can keep beating you up until you give them what they want.

Same with cash. How can they "detect large movements"? When you give a suitcase full of money to someone how does that get detected by the government?

[IconFirm]

According to South Korean National Tax Service, authorities have discussed the possibilities of Bitcoin tax.

That discussion must have lasted at least a few seconds:

"Impossible to implement. Never gonna happen."

Crock of shite.

[iamTom123]

According to South Korean National Tax Service, authorities have discussed the possibilities of Bitcoin tax. Han Seung-Hee, commissioner of the National Tax Service proposed to lawmakers how to tax cryptocurrencies.
Read more at: https://dowbit.com/south-korea-will-impose-bitcoin-tax/

This is the government which has the desire to take some part of the action and technically there is nothing wrong with it. Just like the US, am sure that South Korea also wants to boost their revenue collection and Bitcoin is an opportunity to do it as more and more South Koreans are getting into the Bitcoin club. Now, the implication with this is that when you taxed something you are recognizing its status and this in effect can mean legalization...obviously it would be hard for the government to be taxing something it still categorized as illegal. And we all prefer to pay taxes rather than be banned from buying and selling Bitcoin.