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The South Korean Ministry of Finance maintains the plan to tax digital assets starting from January 1 of next year.
South Korea announces plans to implement virtual asset taxes starting January 1st next year, according to current plans.
This is the first time the Ministry of Finance and Economy of this country has publicly spoken about taxing virtual assets. The information was provided at an urgent meeting related to tax policy, presented by Mr. Moon Kyung-ho, head of the Income Tax Department.
Under current income tax regulations, income from transferring or lending virtual assets will be classified as “other income.” The applicable tax rate is 22% on income exceeding 2.5 million won, consisting of 20% other income tax and 2% local tax.
This policy is expected to affect approximately 13.26 million investors. Mr. Moon stated that the National Tax Service is drafting related notices and has had multiple discussions with five major virtual asset operators. A legislative notice is expected to be announced soon.
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