The South Korean cryptocurrency exchange Bithumb has filed a complaint against the National Tax Service (NTS) because of the requirement to pay additional taxes for the transactions of its foreign customers.
The company claims that cryptocurrencies do not have an official status in the territory of South Korea, which is why the authorities cannot have sufficient reasons to levy any taxes.
The tax court will have to decide within 90 days whether to retain or withdraw from Bithumb the obligation to pay the $ 69.1 million tax that was assigned to it by NTS in November. The Office declares that the withdrawal of income from accounts in Korean won by foreign residents is a taxable event. It is assumed that the exchange itself had to withhold tax from its foreign customers.
We paid the full amount and have since been preparing for arguments. We believe we will be given a chance to clarify our stance in court.
The ministry has its own position on this issue.
Bitcoin under the current law is not an asset. It is clear and simple. The Ministry of Economy and Finance already made that clear. The NTS pushing ahead with the tax imposition is baseless and groundless, especially since it is still awaiting the ministry opinion on the same matter it sought again.
Adviser to Financial Supervisory Service
According to the expert, the NTS maneuver is well thought out and aimed at starting to levy a tax on income that is currently not taxable.
We cannot comment on the ongoing matter. We will await the judgment from the Tax Tribunal.
Earlier, Bithumb was ordered to pay an additional $ 67 million in tax.