Bithumb reportedly hit with a $68.9M tax bill
- The National Tax Service reportedly forced Bithumb to pay the withholding taxes on trading activities of foreign customers.
- The crypto exchange is planning to put up a fight to avoid paying the bill and is considering administrative litigation.
Reportedly, Bithumb, a well-known South Korean crypto exchange, is looking to undertake administrative litigation over a $68.9 million (80 billion won) tax bill. Local news outlet KoreaHerald reported that the local tax agency has handed down more than 80 billion won in taxation on the exchange.
As per the documents published by Vidente via the financial supervisory services, the National Tax Service forced Bithumb to pay the withholding taxes on trading activities of foreign customers. Vidente, Bithumb’s largest shareholder, has reportedly found out about the tax a few days earlier. This was after acquiring a 34.24% stake in the parent company of Bithumb.
KoreaHerald noted that a foreign corporation, which does not have a permanent establishment in South Korea has to pay withholding tax. However, these taxation rules have not yet been exercised in the crypto industry. While abiding the ruling, the crypto exchange is planning to put up a fight to avoid paying the bill and is considering administrative litigation.
Author
Rajarshi Mitra
Independent Analyst
Rajarshi entered the blockchain space in 2016. He is a blockchain researcher who has worked for Blockgeeks and has done research work for several ICOs. He gets regularly invited to give talks on the blockchain technology and cryptocurrencies.
