Thursday, May 19, 2022

South Korea Strengthens Crackdown On Tax Evasion

South Korean regulators are planning to strengthen their crackdown on tax evasion by introducing revised tax codes, according to a report.

Further, it has been reported that these tax codes will help the authorities in seizing crypto assets, directly from the dodger’s digital wallet.

Notably, the government plans to impose the revised code from the next year.

Presently, it is very difficult for the authorities to confiscate digital assets directly from the wallet. However, they are allowed to seize a few of the cryptos through exchanges to pay overdue taxes.

South Korea has been tightening the crypto rules in the country, to root out money laundering and other financial crimes, which could be facilitated using cryptocurrency. 

The government increased the taxes for big earners in the country so that they could share the burden of growing costs of an aging population.

The proposal presented on Monday is just one pillar of the government’s tax system, which revises a total of 16 codes every year.

After the revision, the tax revenue will come down to at least 1.5 trillion won ($1.30 billion) between 2021 and 2026, said the ministry. 

It further mentioned that the tax will be broken for research and development in semiconductors, batteries and vaccine sectors.

“Although that 1.5 trillion can’t be described as tax neutral, it isn’t that big of an amount and something necessary as we revised tax codes,” said finance minister Hong Nam-ki.

South Korea is also planning to expand the tax incentives to those companies which hire their employees especially from outside Seoul.

As per the report, the ministry plans to submit the tax review in Parliament by September 03, so that it gets approval from the lawmakers.

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