The Ministry of Economy and Finance confirmed that on the 1st of January 2022, profit from cryptocurrencies shall be subject to a 20% tax. And gifts and inheritance in the form of cryptocurrencies shall be taxed by the same rate of 20%.
Exempted from Cryptocurrency Tax
Any profit, gift and/or inheritance worth 2.5 million won and below will be exempted from the cryptocurrency tax. And only the profit, gift or inheritance in excess of 2.5 million won will be covered by the 20% tax on cryptocurrency, according to the Ministry.
However, this new tax on cryptocurrency has been widely opposed by many South Koreans. And a petition gathering signatures against this measure has already been circulated. The proponent of this petition aims to gather more signatures in order to pressure government officials to reconsider this new tax plan.
We will update our readers for any further developments about this new tax measure on cryptocurrencies. And if you are interested to other articles about cryptocurrencies, kindly read: Korea’s Virtual Assets/Cryptocurrency Law and Bithump Crypto-Currency Exchange in Korea to Ban Trading in 11 Countries.
You may also schedule a free initial consultation with a lawyer if you have questions and other legal concerns in South Korea: Please Schedule a Call.
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