Tax specialists in South Korea have reportedly suggested the authorities to use a low-level trading tax for crypto profits, prior to requiring citizens to fulfill a transfer income tax duty. 

Reported by the Business Korea, with the local government is looking to introduce the tax reform plan in the later half of 2020, the low-level trading tax has been recommended to address the legal infrastructure insufficiency to enact transfer taxation in the country. 

Specifically, in a session on Feb.21st, members of the Korean Tax Policy Association have advised the authorities to bring into effect this new 2-phase initiative, claiming that a more deliberative method employed, regarding crypto implementation for income tax, will have the maximum effective level. 

“Related laws are still absent and the taxation infrastructure is still insufficient to cover cryptocurrencies and, as such, some supplements need to be added on the expense calculation side.”

The Association further clarified that prior to making citizens pay a transfer tax, there should be a clearly defined finalization for the fee to obtain crypto, but the task will be rather difficult, since digital coins are being traded in different rates, across numerous Korea-based exchanges.