Korean citizens will need to pay tax on crypto assets received as gifts or inheritance from 2022.
The Korean National Tax Service has announced that gifted or inherited crypto assets will be taxed under existing provisions, at a rate of between 10 and 50 percent, depending on their value.
Korea to Tax Crypto Gifts and Inheritance
Korean citizens will have to pay a new tax on crypto from 2022.
Local news agencies reported Tuesday that the Korean National Tax Service will levy a new crypto tax in 2022 targeting assets received as a gift or inheritance.
Under the new provisions, crypto gifts and inheritances will be taxed in line with other gifted or inherited assets at a rate of between 10 and 50 percent, depending on their total value. Authorities state that the average daily price measured one month before and after the date of transfer will be used to calculate the correct amount of tax to be paid.
The National Tax Service’s announcement listed four virtual asset providers—Dunamu, Bithumb Korea, Korbit, and Coinone—that will need to enforce the new tax provisions in the next year.
This year, crypto regulations in Korea have tightened, but not without some pushback. At the start of December, lawmakers voted to push back the introduction of a more general 20% tax on crypto gains over the threshold of 2.5 million KRW ($2,099). The crypto gains tax is now set to come into effect in 2023.
Elsewhere, Korean crypto exchanges are changing their policies to help them comply with the new regulations surrounding digital assets. Earlier this week, the country’s third-largest exchange, Coinone, announced plans to block withdrawals to unverified external wallets as part of its efforts to crack down on illegal crypto activities such as money laundering.
Disclosure: At the time of writing this feature, the author owned ETH and several other cryptocurrencies.