- Crypto miners in South Korea involved in crypto mining may enjoy a major tax break
- The country’s digital currency tax regime will start in 2022
Crypto miners in South Korea may enjoy a major tax break. This can be possible when the country’s digital currency tax regime starts in 2022.
According to a report, South Korea’s Ministry of Economy and Finance stated new details of the country’s impending crypto tax law. It includes a plan for crypto miners to report operating costs as tax deductibles. These fees cover electricity bills. However, miners need to show how much electricity they use in their works.
The Authorities said,
The tax of gains of over 2.5M won on ($2,230) crypto transactions would be 20% starting 2022. But any costs linked with mining actions can be deductible
Also, the tax that crypto investors would pay next year would be minimal, says the ministry. Despite the surge of cryptos this year, the tax will be applied to gains or losses from 2022.
Although South Korea wants to shut down all crypto exchanges, there is a rise in crypto mining activities. In March, local news revealed a rise in mining hardware imports. Specifically via Incheon, the country’s famous air terminal.
In April, the prime minister candidate Kim Boo-kyum said he wants to protect crypto investors. He said to look carefully into the matter as there must not be any victims.