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
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish, a cryptocurrency exchange, which in turn is owned by Block.one, a firm with interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets including bitcoin and EOS. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.