South Korea is proposing ways to revise its tax base, the amendments include redistributive measures such as raising taxes on affluent individuals and corporations, tax evasion, as well as a crackdown on money laundering.
with proposals to strengthen the government’s ability to seize tax evaders’ crypto assets directly from their personal wallets.
South Korean legislators want to change the tax code so that tax authorities can seize crypto assets directly from tax evaders’ digital wallets.
The suggestion is part of a larger, annual assessment of the country’s tax structure, according to a report released on July 26.
Faced with rising welfare expenditures and the need to support an ageing population, MPs are considering amending 16 existing tax codes this year.
These amendments include redistributive measures such as raising taxes on affluent individuals and corporations, as well as cracking down on money laundering and tax evasion in industries such as digital assets.
While South Korean authorities can currently collect crypto assets from centralized exchanges, the reforms would greatly expand their authority by allowing them to grab personal wallets as well.
Overall, the report estimates that the adjustments will result in a $1.3 billion decrease in tax income for the government as a result of the recommendations for particular tax exemptions to encourage research and development in semiconductors, batteries, and vaccines.
Firms intending to hire personnel outside of Seoul’s capital, as well as those looking to rehtore their production facilities, could benefit from tax advantages.
According to reports, the finance ministry will submit all suggestions to parliament by September 3rd, with MPs still needing to ratify the measures.
As previously reported, Korea plans to impose a 20% tax on Bitcoin (BTC) and cryptocurrency income on January 1, 2022, despite strong opposition from the industry.
All crypto trading capital gains exceeding $2,300 will be subject to a 20% tax under the new regime.
Tax authorities in Seoul confiscated $22 million in cryptocurrency from individuals and company executives who owed back taxes in April.
