The South Korean Internal Revenue Service will tax donated and inherited cryptocurrencies from January 1, 2022. Tax payments are only allowed in fiat currency.
Given that the introduction of a 20% income tax for traders whose annual profit from trading in cryptoassets exceeds 2.5 million won (about $ 2,300) has been postponed to 2023, traders will be able to trade tax-free until the offer is implemented. However, for crypto assets that will be donated or inherited from family members or friends, South Korean citizens are required to comply with tax obligations.
from the beginning of next year.
To make it easier for them, the South Korean Internal Revenue Service (NTS) has added a new tool to its website to help them calculate the amount due. To calculate the value of crypto assets in South Korean won, the widget will use data from the Upbit, Bithumb, Korbit and Coinone cryptocurrency exchanges.
It is noteworthy that instead of calculating the cost of cryptocurrencies at the time of their receipt or inheritance, citizens will use this service to calculate their average price one month before and after the date of inheritance or donation (two months). Perhaps the NTS is concerned that traders may deliberately donate digital assets when the exchange rate falls in order to reduce the tax base.
The South Korean government is tightening rules to combat manipulation in the cryptocurrency market. Earlier, the country’s Ministry of Finance announced that tax authorities would be able to confiscate cryptocurrencies from tax-evading traders and investors. The seized cryptoassets will be spent on social security.
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