Taxation of Bitcoin transaction income from next year… Resolution by the State Council of the Tax Law Enforcement Decree


Prime Minister Jeong Sye-gyun is presiding over the Seoul-Sejong Video State Council on the 9th at the State Council of the Government Complex Sejong. 2021.2.9/News1 © News1 Reporter Jang Soo-young

Amendment to the Enforcement Decree of the Income Tax Act, which is subject to taxation when an annual income of 2.5 million won or more is generated from transactions of virtual assets such as cryptocurrencies such as bitcoin from next year, was decided at a cabinet meeting on the 9th.

On the morning of the 9th, the government deliberated and resolved two bills including partial amendments to the Telecommunications Business Act, 24 presidential decrees including amendments to the Corporate Tax Act, and four general agendas at the 6th State Council meeting presided over by Prime Minister Jeong Sye-gyun.

The revised bill of the Telecommunications Business Act is to support OTT business operators by reorganizing related laws, such as categorizing online video service (OTT) as a special type of value-added communication business, easing investment restrictions, and easing regulations on key communication businesses.

The revised bill of the Culture and Arts Education Support Act contains details such as confirming the definition provisions of school art instructors, which have not had a legal basis, and unifying the subject of employment.

Nineteen amendments to the Enforcement Decree of the Tax Law, including the Income Tax Law and the Corporate Tax Law, were also resolved.

From next year, 20% of the income generated from the transfer or rental of virtual assets over 2.5 million won will be taxed separately as other income. The income amount of virtual assets that is the tax base is the amount of consideration for transfer (market price) minus the acquisition price and incidental expenses, and for virtual assets held before January 1, 2022, the market price at the time of December 31, 2021 is determined as the acquisition price. .

Also, the right to sell in lots is included in the number of houses in the same way as the right to move in. The policy is to apply the same requirements as the temporary’one housing unit sale right’, which is regarded as one house, and the’one household, one house non-taxation’, and the’second homeowner’s middle and exclusion’ benefits. The application period is from January 1 of this year to newly acquired sales rights.

Real estate rental business, real estate supply business, and consumer service businesses such as entertainment pubs and hotels and inns cannot receive the integrated investment tax credit, which is newly applied from this year. If a company invests in the sector, it will not receive tax credits.

In the case of the corporate tax law, the standard amount recognized as small entertainment expenses, even if there is no proof of eligibility, has been increased from less than 10,000 won to less than 30,000 won.

The liquor tax rate for beer and takju rises from 830.3 to 834.4 won and from 41.7 won to 41.9 won per 1 liter as inflation increases. As a result, the expected tax revenue increase effect is about 10 billion won.

The Enforcement Decree of the Value Added Tax Act contains details such as increasing the standard amount of simplified taxation from less than 48 million won to less than 80 million won from the total supply price of the previous year to less than 80 million won in order to ease the burden of small-scale individual business owners, and adjusting the value-added rate by industry.

Some amendments to the Enforcement Decree of the Military Service Act prepared legal grounds for applicants for the National Examination Examination last month to apply additionally to public health doctors.

This is because the 86th National Doctoral Examination Practical Exam is divided into two sessions in the first half and the second half, and the announcement date (February 22) of the successful applicants for the first half exam is scheduled after the 10th deadline for submitting applications for public health doctors under the current law.

The amendment contained the contents of the establishment of a new exception clause that sets the deadline for submission of applications for candidates for medical officers and medical officers in consultation with the Minister of Health and Welfare, if necessary for the public interest.

The Enforcement Decree of the Local Tax Act stipulated the range of one household and one house based on households under the Resident Registration Act. Accordingly, the spouse and minor/unmarried children are considered to be the same household even if they have different addresses, and the expedient multi-household owners who formally separate households are excluded from the exemption.

In particular, when the public price is less than 600 million won, it deliberated and decided on a revised bill to promote the stability of the common people’s housing by lowering the property tax rate of one household and one house.