[세법 시행령 Q&A]”From next year, if you earn more than 2.5 million won with Bitcoin, tax will be imposed”

The standard of’large shareholder’, which is required to pay capital gains tax when selling stocks this year and next year, has been set at 1 billion won for the total family. When the financial investment income tax goes into effect in 2023, in order to receive a deduction of up to 50 million won through fund investment, it is necessary to invest in a public offering fund in which more than two-thirds of investment assets are domestic stocks. Investors who have earned more than 2.5 million won per year by investing in virtual assets such as bitcoin must pay 20% of the profit as tax starting next year.

In addition, if you invest in a fund with more than 50% of the infrastructure investment in New Deal, you can benefit from a separate taxation rate of 9%. In order to avoid the regulation of multi-homeowners in the’one-house, one-sale right’, which is applied from the pre-sale right bought this year, you can sell the existing house within three years after purchasing the pre-sale right.

On the 6th, the Ministry of Strategy and Finance unveiled an amendment to the enforcement decree following the 2020 tax law amendment. The revised enforcement decrees are the enforcement decrees of a total of 21 tax laws including the Income Tax Act, Inheritance Tax and Gift Tax Act.

The amendment will be finalized at the next month’s cabinet meeting after going through the legislative notice process. The main contents are summarized in a question and answer format.

-Will 1 billion won of stock’transfer income tax for major shareholders’ remain until next year

“It was decided to remove the’spouse and direct surviving stocks of 300 million won’ standard in the initial enforcement decree, and keep the’total of 1 billion won’ until the end of 2022 as before. In addition to the stocks owned by the family, it is not subject to transfer tax unless it holds more than 1 billion won per item.

-How is the tax base of the financial investment income tax introduced in 2023 calculated?

“The amount of financial investment income is calculated by dividing the amount of income from listed stocks in Korea (domestic stock + equity fund) and other financial investment income. The tax base is the amount of profits earned in one year minus the amount of losses (carried-over loss) and basic deductions for the preceding three years.

A deduction of 50 million won is applied to domestic listed stocks and 2.5 million won to other financial investment income. If you earn 100 million won by investing in domestic stocks and lose 30 million won in the preceding three years, the tax base will be 20 million won (100 million-30 million-50 million won). The larger of the’Closing price on December 31, 2022′ and’Actual acquisition price’ is applied to the stock acquisition price.”

-What financial investment products are eligible for the basic deduction of 50 million won?

“Under the Income Tax Act, profits made from domestic equity funds sold by selling stocks listed on domestic stock exchanges are regarded as’income such as domestic listed stocks’. Among them, the Enforcement Decree specified domestic equity-type funds as’funds that manage more than two-thirds of the total assets as listed stocks in Korea.’

-Bitcoin investor. It will be included in the taxation target from next year. How will the tax be charged?

“If you sell or rent virtual assets starting next year and earn more than 2.5 million won, the excess will be taxed separately as’other income’ at a 20% tax rate. Taxable income is the amount of income minus necessary expenses (asset acquisition price). If you are holding virtual assets from this year, the higher of the market price as of December 31 this year (average price for a month before and after the trading day) and the actual price acquired is the acquisition price.”

-You want to receive tax benefits by investing in the New Deal Infrastructure Fund. Which fund is the target?

“If you invest in a publicly offered New Deal Infrastructure Fund, you will receive a separate tax (9%) benefit of up to 200 million won. Funds eligible for tax support are real estate funds (including real estate investment companies, investment loan funds, and special asset funds) with more than 50% of the New Deal infrastructure investment. The government will form a’New Deal Infrastructure Deliberation Committee’ to deliberate on infrastructure and real estate in the information and communications industry and green industry to decide whether or not to provide a New Deal infrastructure.”

-1 The homeowner bought an apartment sale ticket. How can I avoid the regulation of multi-homed people?

“It is included in the number of houses starting from January 1 of this year. If you already own a house, you will be a two-homed person. However, in the case of being recognized as’temporary 1 house 1 sale right’, ‘1 household 1 house non-taxation’ can be applied as it is, and it is also excluded from the application of the heavy tax rate for 2 houses in the area subject to adjustment. In order to be recognized as a temporary one-house sale right, ① sell the existing house within 3 years after purchasing the sale right, or ② within two years after the new house is completed, all the households must move and live for at least one year and sell the existing house.”

-While operating a restaurant, it recorded 70 million won in sales this year. How will the tax be calculated if simplified VAT is implemented this year?

“Businesses with annual sales of 48 million to 80 million won are subject to simplified VAT. Simplified taxpayer’s tax is the product of sales multiplied by the value-added rate for each business type, and the tax rate is multiplied by 10%. If you are operating a restaurant and sales of 70 million won this year, 100.5 million won, which is the product of sales (70 million won) and the restaurant value added rate (15%), is subject to taxation, and the actual VAT is 10% of this amount, or 1.05 million won.”

Sejong = Park Se-in reporter [email protected]

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