South Korean Tax Official Says Bithumb Black Costs May Face Deduction Limits

South Korea’s National Tax Service (NTS) Deputy Commissioner Park Hae-young said Thursday, Oct. 22, that Bithumb’s prepaid-card spending appeared to qualify as business promotion expenses. The classification affects how much of the spending can be deducted from taxable income. South Korean rules allow full deductions for promotional expenses distributed to all eligible customers under standards disclosed in advance. Business promotion expenses, the current term for the former entertainment-expense category, face deduction limits. For companies outside the small and midsize business category, the basic limit is 12 million won, plus an amount tied to revenue. Bithumb has treated the card spending as promotional costs. Bithumb, a South Korean cryptocurrency exchange, began its Black Premium membership in January 2024 for customers with at least 100 billion won in monthly trading volume.

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