SEOUL, Dec. 30 (Korea Bizwire) — South Korea’s tax agency has imposed 80.3 billion won (US$69.2 million) in withholding tax on Bithumb Korea, according to the largest shareholder of Bithumb Holdings.
Vidente Co., the largest shareholder of Bithumb Holdings, said in a regulatory filing on Friday that it confirmed the decision by the National Tax Service on Nov. 25 on withholding tax of foreign customers.
Bithumb Korea — South Korea’s largest cryptocurrency exchange operated by Bithumb Holdings — plans to take legal action against the withholding tax, according to Vidente.
Under the law, a person paying salary income, pension income and other income is required to withhold income tax at the time of such payment, and to pay it to the government.
The NTS decision means that Bithumb Korea has to pay the withholding tax to the government on behalf of its foreign customers and that Bithumb Korea should receive the money from its foreign customers.
Still, it is nearly impossible for Bithumb Korea to get back the money from its customers.
It remains unclear how many foreigners use Bithumb Korea.