[세법 시행령] Bitcoin and stock transfer tax 20% taxed… Maintain 1 billion won based on major shareholders

Input 2021.01.06 15:00

Stocks 2023, Bitcoin taxed from 2022 on capital gains
Stocks of 50 million won or more, bitcoin 2.5 million won or more
Duty to report Bitcoin income, 20% penalty in case of violation

From 2023 onwards, individual investors who have earned more than 50 million won by investing in listed stocks in Korea must pay a capital gains tax (transfer tax) of 20% of the profits. Taking this into account, the standard for large shareholders subject to stock transfer tax will remain at the current 1 billion won until the end of next year.

Taxation on virtual assets such as bitcoin has also been introduced from 2022, and if the annual income obtained from selling virtual assets is more than 2.5 million won, an income tax of 20% is similarly imposed.

On the 6th, the Ministry of Strategy and Finance announced on the 6th that the legislation will be announced and implemented in February after a meeting of the vice ministers and the State Council, etc.

First of all, individual investors who earned more than 50 million won with domestic listed stocks must pay 20% tax on the gains from the transfer after subtracting 50 million won from 2023. If the gain on the transfer exceeds 300 million won, 25% must be paid as tax. Currently, the taxation of the capital gains of listed stocks, limited to major shareholders, is taxed as financial investment income, which extends to minority shareholders. The acquisition price, which is the basis for taxation, is the greater of the final market price announced on December 31, 2022 and the actual acquisition price.

This is in accordance with the newly established financial investment income taxation plan. The government decided to create a’financial investment income’ that is classified and taxed separately from comprehensive income, capital gains, and retirement income by grouping the income generated from all financial investment products, including all bonds that were previously in the’taxable blind spot’. did. The Ministry of Science and Technology plans to start partially applying it in 2022 and introduce it in full in 2023. Financial investment income is taxed at the basic 20% (25% for excess of 300 million won) at the same tax rate. A basic deduction of 2.5 million won is applied to the amount of financial investment income other than the income amount of domestic listed stocks.

Excluding major shareholders whose ownership ratio is above a certain standard (KOSPI 1%, KOSDAQ 2%) or the total amount of stocks held by item is 1 billion won or more (300 million won or more from next year), most investors do not pay the stock transfer tax and only withhold the securities transaction tax Borne by.

Accordingly, the range of major shareholders subject to stock capital gains tax will be maintained at 1 billion won, which is the current standard, for immediate family members until the end of 2022. The Ministry of Science and Technology initially pushed to reduce the total of 300 million won for immediate family members due to the consistency of policies, but it changed its direction in consideration of deteriorating public opinion such as a backlash from Donghak ants and the establishment of a financial investment income tax.

The method of calculating the market price of listed stocks, which has been different in the corporate tax law and income tax law, will be unified. In the case of bulk or over-the-counter transactions, the final market price is applied on the date of the transaction, and a 20% premium is applied when the transfer of management rights is involved.

Taxation on virtual assets such as bitcoin will also be implemented from next year. The government plan tried to tax it from October this year, but it was delayed by three months. Other income obtained from selling virtual assets is taxed separately at a rate of 20% on a yearly basis, and annual income of less than 2.5 million won is excluded from taxation. For example, if you make 5 million won per year by buying and selling bitcoin, you have to pay 500,000 won, 20% of the remaining 2.5 million won in tax, excluding 2.5 million won.

The market price of virtual assets, which is the basis for taxation, is the average daily average price announced by the virtual asset providers announced by the Commissioner of the National Tax Service for one month before and after the transaction date. In the case of virtual assets held before January 1, 2022, which is the time of taxation, the market price at the time of December 31, 2021 is set as the acquisition price and is taxed. If the actual acquisition price is greater than the current market price, tax is based on the actual acquisition price. When a non-resident in Korea or a foreign corporation transfers, rents, or withdraws virtual assets, the virtual asset business operator shall withhold and pay.

In the virtual asset income tax method, as with general income tax, the taxpayer must declare and pay annual income. If the income of the virtual asset exceeds 2.5 million won per year, but the income tax declaration is omitted and the taxation authority captures it, an additional tax (20%) will be imposed like any other income tax.

From next year, eight businesses will be added to the businesses subject to mandatory issuance of cash receipts, including automobile wash, machine tool retail, and health supplement retail. The subject of compulsory issuance of electronic tax invoices will also be expanded to more than 200 million won from individual businesses with an income of 300 million or more in the previous year. Public interest corporations that hold more than 5% of specific stocks must annually report the performance of follow-up management to the head of the local tax office, and if not reported, an additional 0.5% of the total assets will be imposed.

Capital gains tax is added to the tax credit for electronic filing and a tax credit of 20,000 won per case is applied. In the case of taxable earned income, compensation for public officials is added. In the meantime, rewards were not subject to taxation, but in the future, prizes and injuries received by government officials from the state or local governments that exceed 2.4 million won per year will be taxed as earned income. In addition, profits from the transfer of calligraphy and antiques, which were previously taxed as other income, will be taxed as business income if they are sold with a business site or registered as a business.

For the transparent operation of public interest corporations, the period of recognition as a private organization subject to donations will be reduced from 5 years to 3 years after the designated date. Starting in March, the tax rates for beer and takju, subject to the volume-based tax, will be adjusted to 834.4 won and 41.9 won per liter, respectively, reflecting the consumer inflation rate (0.5%) in the previous year.