Seoul may cancel substantial tax benefits for crypto exchanges soon. For now, tax advantages are received by smaller companies.
The government has proposed to revise the effective legislation and de-list trading platforms dealing with the cryptocurrencies in the category for start-ups or small and medium entities, which enjoy up to 100% tax rebates.
According to the available information, startups and small and medium entities can apply for tax reliefs (income or corporate) at 50-100% for the first five business years. At the same time, following this period small companies can receive tax preferences at 5-30%.
In particular, Seoul sees no reasons for granting tax preferences to crypto exchanges as this is a hardly effective source of added value.
The draft bill will be brought before the National Assembly on August 31. Notably, blockchain companies aimed at the development of new solutions and projects will enjoy tax benefits under any scenario. This means that the government strives to boost the development of new technologies in the country.
For reference, the local regulator has lately noted the urgent need for approval of the crypto rules in the country.