Saturday, February 4, 2023

South Korean Government Allow Crypto Miners To Deduct Operating Cost From Tax Filings

South Korean cryptocurrency miners might enjoy a tax break after the imposition of the digital tax regime in the year 2022. 

On May 05, a few additional details were released by the country’s Ministry of Economy and Finance which states that the crypto miners are allowed to report their operating expenses as tax deductibles.

As per the details, the miners’ operating expenses will include electricity bills. And while reporting that expense the miners would be required to prove the amount of electricity they have used during operations.

Although South Korea is not a major crypto mining hub, globally, recently, some of its regions are actively taking part in mining activity.

In March 2021, a report revealed that Korea imported an increasing number of mining hardware through Incheon, the most popular air terminal of South Korea.

In South Korea, crypto mining hardware with a value of up to $150 is considered to be used personally.

Although the PC gaming rooms in South Korea did not receive much encouragement due to the outbreak of COVID-19, still the PC bangs have been using their computers for mining.   

Earlier, a report was published stating that miners are using gaming computers for mining cryptos in the country. 

According to the South Korean Government, the authorities could only impose 20 percent of crypto trading tax only on profits above $2230 earned in the year 2022.

In a recent survey by a local television station in the country, more than half of the participants in the poll are in favor of the crypto trading tax.

In South Korea, the crypto tax law has also faced some criticism from the crypto stakeholders, but still, the prime minister nominee of the country Kim Boo-kyum has promised the country to look into the law.

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