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

[DowBit]

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/

[hbhomer]

South Korea legalized bitcoins,right? To impose tax this country should have laws regulating bitcoins first.

[aso118]

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.

[cabron]

South Korea legalized bitcoins,right? To impose tax this country should have laws regulating bitcoins first.

That is sort of how it works and I hope they do have the laws and they can start with the exchanges they have. China may follow after this.
They haven't completely banned crypto as far as I know, they do have NEO still. Once China is gonna be on board again, BTC will probably $10K. 

[yugyug]

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.

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.

[glowing10]

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.

Yes I am also not sure that is this the right way to tax an additional for the people who uses bitcoin and makes profit. Anyways they would be paying their taxes as normal people who earn income. But making people pay additional taxes for bitcoin is something which may not be liked by the people of South Korea.

[TravelMug]

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.

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.

That is the main reason why they want to impose tax to improved their economy, however, they shouldn't imposed higher tax on crypto's. If they imposed higher tax then how will people used it to buy online? If my memory serves me right, Australia has tax exceptions when you used bitcoin to purchased things online. They are putting tax on bitcoin just like the traditional fiat. Oh well, seems that all government now wants to really get a crack on the booming bitcoin and cryptocurrency in general. Marketcap is now at $160-170B, with bitcoin dominating more than 50% of that. No wonder everyone want to take a slice of the pie.

[Slow death]

Once China is gonna be on board again, BTC will probably $10K. 

I hope China is no longer the dominant country of bitcoin, see how bitcoin is growing. The fear of shady government (Chinese government) does not have as much influence on bitcoin as in the past. It is true that we still have to destroy the power they have in the mining field because it is extremely dangerous, but in time this barrier will be overcome, china will be part of the past.


they took a long time to implement this.

[Lancusters]

Always different news. The bitcoin ban, they want to legalize. What to believe? Anything. The government does not want to legalize bitcoin but want to have it with taxes. It seems to me that the bitcoin community pays much attention to the legalization of bitcoin. Need to pay more attention to circulation of bitcoins between members of the community.

[Taki]

Well, everything was going to that. I was saying that after the mass adoption and legalization bitcoin will never be so free as before and now that's happening. I only wander will they tax bitcoin only (cause of the thread saying about bitcoin's taxation only) or all crypto currencies?

[BitSat]

Well, everything was going to that. I was saying that after the mass adoption and legalization bitcoin will never be so free as before and now that's happening. I only wander will they tax bitcoin only (cause of the thread saying about bitcoin's taxation only) or all crypto currencies?

This is good point as its going to happen only for bitcoin or going for all other crypto currencies because if they will implement then its going to hurt this all  as now many other countries also going to bring new term & condition for digital currencies as now KYC is also must for most of exchange users

[Karakyli]

The tax on income for financial transactions involving bitcoins is soon the usual practice of all states. In return, this state recognizes crypto currency as a legal tender and takes legal protection for violation of the rights of citizens in the commission of such transactions.

[Carlton Banks]

The tax on income for financial transactions involving bitcoins is soon the usual practice of all states. In return, this state recognizes crypto currency as a legal tender and takes legal protection for violation of the rights of citizens in the commission of such transactions.

Uh, hello?

How are the state going to compensate victims of Bitcoin theft, if the thief cannot be traced or coerced? The state aren't going to be collecting any significant amount of taxes from any Bitcoin holder for the exact same reason: it's very difficult to trace or coerce Bitcoin users into giving their BTC up.

[apex944]

How are they going to implement this? To enforce, they would have to monitor. What if no one cashes out? How would they tax it?

[rjbtc2017]

Do they know what bitcoin is? How are they gonna tax bitcoin? VIA WHAT? Via exchanging it into fiat money? or Via Products/Services?. They should at least take time to learn what cryptocurrency is before going to the point of taxing it without even knowing what is it.
Laws and Regulations are needed to be imposed first before going to the taxing issues.

[entrepmind23]

Do they know what bitcoin is? How are they gonna tax bitcoin? VIA WHAT? Via exchanging it into fiat money? or Via Products/Services?. They should at least take time to learn what cryptocurrency is before going to the point of taxing it without even knowing what is it.
Laws and Regulations are needed to be imposed first before going to the taxing issues.

They would classify bitcoin as asset like what Japan and USA did so that they can tax it like how they tax fiat money. This is not surprising as government would want to have a share as well to the income generated by the people from cryptocurrency. It is hard to track the transactions but they can tax the exchanges implementing the transactions so the platforms or exchanges can pass the tax to its users and in effect, they can still have a tax even if they don't specifically know who are the people behind those transactions.

[lexamagic]

Do they know what bitcoin is? How are they gonna tax bitcoin? VIA WHAT? Via exchanging it into fiat money? or Via Products/Services?. They should at least take time to learn what cryptocurrency is before going to the point of taxing it without even knowing what is it.
Laws and Regulations are needed to be imposed first before going to the taxing issues.

They would classify bitcoin as asset like what Japan and USA did so that they can tax it like how they tax fiat money. This is not surprising as government would want to have a share as well to the income generated by the people from cryptocurrency. It is hard to track the transactions but they can tax the exchanges implementing the transactions so the platforms or exchanges can pass the tax to its users and in effect, they can still have a tax even if they don't specifically know who are the people behind those transactions.

The government is very anxious to tax bitcoins. But people will try to hide their incomes. Therefore, there will remain a very small percentage of those who want to make payments openly and pay taxes for it

[Benezim]

Like it or not, but I consider this a very positive development. Bitcoin is still considered the currency of the “dark corners of the internet”. Taxation gives it legitimacy. South Korea will be a pioneer administration in assessing Bitcoin from a government perspective. They can set an example for other countries who hesitate or don’t get a grip on it.

Good news

[darkangel11]

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.

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.

Following your thought buying USD or Euro and holding it is also an investment, so if you have 1 million USD stashed under the mattress you should check its value each year and pay taxes, right? IMO it's ridiculous. Basically they are hoping for holders to start declaring their ownership. It will prove to be extremely difficult.
I also don't agree with your vision of taxation.

[rjbtc2017]

Do they know what bitcoin is? How are they gonna tax bitcoin? VIA WHAT? Via exchanging it into fiat money? or Via Products/Services?. They should at least take time to learn what cryptocurrency is before going to the point of taxing it without even knowing what is it.
Laws and Regulations are needed to be imposed first before going to the taxing issues.

They would classify bitcoin as asset like what Japan and USA did so that they can tax it like how they tax fiat money. This is not surprising as government would want to have a share as well to the income generated by the people from cryptocurrency. It is hard to track the transactions but they can tax the exchanges implementing the transactions so the platforms or exchanges can pass the tax to its users and in effect, they can still have a tax even if they don't specifically know who are the people behind those transactions.

That's the point of my question, how would they do that? how would they track these people? The "Feeling of security" on transaction will be breached if they will also impose an 1 ID= 1 Bitcoin Address and will they have a list of bitcoin addresses  ( who are registered to their directory ) are the one who is eligible to transact with bitcoins?. This is going to be ridiculous and i'm really against on this idea.