South Korea is stepping up efforts to combat the use of cryptocurrencies for tax evasion by introducing a new tax on crypto income.
Crackdown on Tax Evasion
South Korea’s National Tax Service (NTS) has uncovered various instances of cryptocurrencies being used to evade taxes and dodge tax liabilities. Authorities are intensifying efforts to monitor the crypto holdings of major tax debtors to detect illegal practices.
Legal Actions
The NTS has filed a lawsuit against an individual who attempted to hide crypto assets bought with funds from property sales by transferring them to multiple wallets. These transactions were traced and identified, leading to legal proceedings.
New Tax Legislation
South Korea is implementing a new 20% tax on crypto income for earnings exceeding 50 million Korean won, emphasizing the government’s dedication to regulating digital assets and ensuring tax compliance.
These measures highlight South Korea's serious intentions regarding cryptocurrency regulation and tax evasion prevention, ensuring a fair tax system.
