South Korea to Tax Inherited, Gifted Crypto Starting Next Year: Report
The country has postponed a general income tax on virtual assets until 2023.
Dec 31, 2021 at 12:50 p.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/JDSOPNL4CRDDBOQBJZJNQ7TR2M.jpg)
Seoul, South Korea. (Ciaran O'Brien/Unsplash)
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South Korea will begin taxing inherited or gifted crypto starting in 2022, according to a report by KBS News.
- While the country’s plan to tax income from virtual assets has been postponed until 2023, users will be required to pay a levy on assets that are inherited or donated.
- The country’s tax authority announced Tuesday that it plans to evaluate the value of crypto assets across four service providers – Dunamu, Bithumb Korea, Korbit and Coinone – to determine the average price of the crypto the month before and after it is received.
- The National Tax Service will provide an “average daily price of virtual assets” on its online portal starting in March.
- The delayed proposed taxation on crypto income would have levied a 20% tax on gains of over 2.5 million won (US$2,122) in a one-year period starting Jan. 1. However, lawmakers from both the ruling and opposition parties opted to delay this with one eye on the presidential election in March, according to local analysts.
Read more: South Korea’s Hashed Under Tax Investigation
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Jamie Crawley is a CoinDesk news reporter based in London.
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