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South Korea to impose taxes on staking and airdrops

Tokens received by South Korean residents as a result of hard forks and airdrops, as well as staking rewards, will be included in the inheritance and gift tax calculation. Local media reported this by the South Korean Ministry of Strategy and Finance.

The tax will be collected from the “third party transferring the virtual asset for free.” The rate will be 10-50%. The law requires the buyer to file a tax return within three months of the operation.

The agency acknowledged that the transfer of cryptocurrencies should be considered on a case-by-case basis, given the lack of regulatory clarity on the matter.

“Whether a particular transaction with virtual assets is taxed depends on the particular situation. For example, whether the reward or the actual property and profit is transferred”, officials noted.

The statement completes the decision taken in July 2022 to delay the entry into force of income tax from activities with digital assets until January 1, 2025.

Initially, the authorities planned to impose a 20% tax on the income of bitcoin traders from January 1, 2022.

Despite citizen support for the government’s plans, in September 2021 parliamentarians from the ruling Toburo Democratic Party voted for a one-year delay.

In October, representatives of the opposition People’s Power party made a similar proposal. The deputies explained their situation with the unprepared financial infrastructure for the introduction of the tax.

The government fought back against attempts by lawmakers to approve the deferment, but in late November the relevant committee of the National Assembly voted for a bipartisan amendment postponing the introduction of taxation.

Recall that in May 2022, the media reported that the newly elected president of the country, Yoon Sok-yeol, was speaking for a new postponement.

Read ForkLog bitcoin news in our Telegram – cryptocurrency news, courses and analysis.

Source: Fork Log

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