South Korea’s Ministry of Finance said on Monday that it will step up efforts to combat tax evasion by cryptocurrency investors and high-income earners in order to seek new income to make up for rising welfare costs. The South Korean government proposes to amend the tax law. Starting next year, the tax authorities will be able to confiscate cryptocurrency assets held by tax evaders, even if their cryptocurrency is stored in a digital wallet. Under existing rules, it is difficult for the authorities to confiscate virtual assets held by tax evaders in digital wallets, although those virtual assets stored in cryptocurrency exchange accounts can be confiscated to pay overdue taxes.
Tracking down tax evaders is part of a broader investigation in South Korea, which aims to strengthen the supervision of the cryptocurrency market in order to eradicate money laundering and other financial crimes using cryptocurrencies. As a result of the annual tax system review, the Korean government proposes to amend 16 tax laws. South Korea’s Ministry of Finance stated that these amendments will result in a decline of at least 1.5 trillion won (approximately US$1.3 billion) in tax revenue from now to 2026, because the tax deduction for semiconductor, battery and vaccine research and development will exceed that for high-income earners. Any additional taxes.
The South Korean government also proposes to expand tax incentives for companies recruiting outside of the capital, Seoul, and proposes a reduction or exemption of corporate income tax for companies that transfer production capacity back to the country. The Ministry of Finance of South Korea will submit the tax review results to the parliament before September 3, because the proposal needs to be approved by the parliament before it can be implemented.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/south-korea-intends-to-crack-down-on-the-use-of-cryptocurrency-to-evade-tax-can-confiscate-the-cryptocurrency-assets-of-tax-evaders/
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