South Korea Plans to Begin Taxing Inherited or Gifted Crypto
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- A 20 percent tax would be imposed on earnings exceeding 2.5 million won.
- Taxing virtual assets has been postponed until 2023.
Bitcoin’s momentum has been stifled since its all-time high of $67.5k. Many analysts’ predictions of Bitcoin reaching $100k by the end of the month turned out to be a joke due to the slow recovery throughout December.
Despite the on-chain signals, it seems that the master coin will maintain its momentum at least until the beginning of 2022. Although the macro environment is unfavorable, investors remain positive about Bitcoin.
According to a report by KBS News, the South Korean government plans to begin taxing inherited or gifted cryptocurrency in 2022. Taxing virtual assets has been postponed until 2023; however, users who inherit or give virtual assets will still be taxed.
20 Percent Tax
For the month before and after the month of receiving, the tax administration declared on Tuesday that it intends to examine the value of crypto assets among four service providers – Dunamu, Bithumb Korea, Korbit, and Coinone. Starting in March, the National Tax Service’s internet site would give an “average daily price of virtual assets.”
A 20 percent tax would have been imposed on earnings exceeding 2.5 million won (US$2,122) over a year beginning on January 1 under the previously planned taxation of crypto income. According to local observers, parliamentarians from both the government and opposition parties choose to defer this in light of the upcoming presidential election in March.
Cryptocurrency
