Tax to Transfer Gains of Coins
I have a lot of email regarding the Coin taxes in Korea, so this can be some help for you~ 1. Corp. income tax In the case of corporations, income from the transfer of virtual assets is subject to corporate tax even before the 2023FY of the tax law amendment. - Corporate tax adopts the theory of increase in net assets and, according to the principle of net income taxation, is not enumerated (taxed only if there is a stipulated provision in the tax law) like income tax. In principle, if a profit is realized, it is taxed. - On the other hand, since 2022FY, virtual asset valuation methods have been included in the corporate tax law as a written regulation. - When calculating the trading profit, the transaction price is evaluated based on the principle of the transaction, and the third-party transaction market price is evaluated using the first-in-first-out method in case of transactions between related parties. Article 77 of the Enforcement Decree of the Corporate Tax Act (Assessment of Virtual Assets), Virtual assets shall be evaluated according to the first-in-first-out method.
2. Transfer price - Acquisition price = Sales profit 3. However, VAT is not taxed - This is currently under discussion, and if it is viewed as an asset with the same value as gold, it may be recognized as a good and subject to 10% VAT. - However, at present, it is not being taxed with the feeling of acknowledging some of the nature of money. 4. For individuals, it is as follows. Effective from the sale on January 1, 2023 (separate taxation) - How is the income amount calculated? It is calculated by deducting the actual acquisition price of the transferred virtual asset and incidental expenses from the consideration for the transfer or rental of virtual assets (Article 37 (1) 3 of the Income Tax Act). However, the acquisition price of the virtual asset already held before January 1, 2022 shall be the greater of the market price as of December 31, 2021 and the acquisition price of the virtual asset. (Article 37 (5) of the Income Tax Act) The tax amount is calculated as follows (Article 64-3 Paragraph 2 of the Income Tax Act) (Tax calculation method) : (① - ② - ③) × ④ 1Total income: transfer (purchase, exchange) / rental 2Necessary expenses: actual acquisition price, etc.* * Includes incidental expenses (transaction fees, tax-related expenses, etc.) Acquisition price evaluation method: first-in-first-out method. The fictitious acquisition price of virtual assets held before the enforcement of the law: Max (market price as of the day before the enforcement date of the law, actual acquisition price) 3Basic deduction (minimum taxable): 2.5 million won per year 4Tax rate: 20% Long story short, your corporation need to pay taxes from 2022FY and 2023FY for individual. by Jordan Zoh