South Korea imposes tax on tokens received in airdrops

The recipient of free assets must file such profits on the tax return within three months, according to a local outlet

22.08.2022 - 11:15

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What’s new? The authorities in South Korea began taxing digital assets received in free airdrops. The Ministry of Strategy and Finance explained that airdrops qualify as gifts under the Inheritance and Gift Tax Act. The recipient of tokens must now file such gains on his or her tax return within three months. The payment is levied at a rate of 10-50%. The exact amount of tax is determined on a case-by-case basis, according to the local outlet Yonhap News Agency.

Yonhap News Agency’s material

What else is known about taxation? Free virtual asset transactions include airdrops for investors, token airdrops during hard forks, and as any bonus rewards. Taxing the crypto market will reportedly begin working in 2025. In this, taxes on airdrops are already in effect.

Also in August, the South Korean authorities began investigating banks over suspicious crypto transactions. The amount of transfers from 65 companies amounted to about $6,5 billion.

Earlier, the Colombian authorities reported plans to launch a digital currency to curb tax evasion and improve the traceability of transactions made by citizens.

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