Kim Dae-Ji, chairman of South Korea’s National Tax Agency, met with tax officials from Bulgaria and Britain this week to address the “rise of tax-dodging schemes,” including the usage of digital assets. According to a local news site, the National Tax Agency intends to expand its collaboration with Bulgaria and Britain to track down individuals who use “new financial products” such as cryptocurrency to avoid paying taxes, particularly through offshore schemes.
Dae-Ji met with Jim Harra, the Chief Executive of Her Majesty’s Revenue and Customs Commission, last week, and General Rumen Spetsov, the Director of Bulgaria’s National Revenue Agency, two days later. The discussions focused on the transmission of reliable and exact income information from persons accused of tax evasion.
South Korea’s crypto tax regulations are a hot issue in the local crypto community since the country maintains a strict, tightly regulated regulatory regime for digital assets. Local authorities do not recognise them as legal money, although possession and trading are permitted. South Korea is projected to become a crypto hub shortly since the country’s new president, Yoon Suk-yeol, has declared his support for crypto and made proposals for a stronger regulatory structure.
Increasing the minimum threshold for paying capital gains tax on earnings made from digital assets is one of them, as is enabling Initial Coin Offerings (ICOs). South Korea’s Ministry of ICT, Science, and Future Planning announced intentions to invest $187 million in a national metaverse platform, which would primarily be used to boost digital content and business growth across the country.