The Ministry of Strategy and Finance of South Korea plans to introduce a new tax on crypto assets received during the free distribution of tokens.
The agency said airdrops are subject to the Estate and Gift Tax Act. In this case, the tax will be levied on the person to whom the crypto asset is transferred free of charge.
A person liable to pay gift tax must file a declaration within three months after receiving the crypto asset. The Ministry intends to introduce a tax in the amount of 10% to 50%, depending on each individual case.
“Whether a particular VA transaction is subject to gift tax or not is a matter to be determined on a case-by-case basis. For example, whether it is a refund or whether the actual property and profits are transferred,” the agency said.
The ministry stressed that it would take some time to review each individual case. At the same time, it is not necessary that each distribution of crypto assets will be taxed.
Earlier, the National Tax Service of South Korea (NTS) announced that it would take tough measures against tax evasion using virtual assets such as cryptocurrencies and platforms working with them.
Source: Bits
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