The South Korean Ministry of Economy and Finance is preparing an amendment to the National Income Tax Act. This could include rules for profitable sales of crypto currencies as well as profits from domestic crypto mining projects.
According to the local newspaper "E Daily" of May 27, the ministry also mentioned the profits generated by the first coin offers, i.e. the ICO. This is tantamount to a change in the country's rhetoric towards the ICO, which is still banned throughout the country.
The report states that "crypto-crypto transactions such as Bitcoin (BTC) will "probably" be exempt from the proposed change and are only intended to tax profitable transactions and not loss-making.
An official from the Ministry of Information and Technology explained that the principle of taxation will follow the logic of 'taxes that contain income'.
The South Korean government tried to draft a bill on taxation of individual crypto profits at the beginning of the year. Since the profits of individuals from virtual currency transactions are not shown as income, these profits are not subject to income tax.
