According to the news of the local newspaper Digital Times, a government official in South Korea, cryptocurrency He said airdrop buyers could be charged up to 50% tax.
So airdrops Blockchain based free token distributions, cryptocurrency and altcoin It is known as one of the ways companies market their ventures.
South Korea announced last year that it would begin taxing inherited or gifted tokens under local inheritance tax laws.
South Korean Authorities Plan to Tax Freely Distributed Cryptocurrency Airdrops
An official from the Ministry of Economy and Finance said Monday that the tax authority has interpreted this to include crypto airdrops, the Digital Times reported.
In response to a question on the subject, the official said that the gift tax could be withheld from the person receiving the airdrop. The report states that the buyer will need to file a tax return within three months after the airdrop and the tax will be charged at 10%-50%.
A tax industry official told the Digital Times that the tax will vary from case to case.
South Korea is stepping up its initiatives to regulate cryptocurrencies. The country plans to begin taxing crypto earnings by 2025, including a 20% tax on annual earnings exceeding 2.5 million won ($1,860).
Crypto Taxes Gaining Speed Around The World
South Korea is also not alone in these initiatives. The UK published guidance on cryptocurrency taxation in 2021; US citizens investing in crypto are also expected to fill out a tax return, and India has also introduced new tax policies.
Officials of the Ministry of Economy and Finance of South Korea have not yet made an official statement on the subject.
*Not investment advice.
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