South Korean Officials to Impose Gift Tax on Crypto Airdrops: Report

South Korean Authorities to Levy Gift Tax on Crypto Airdrops: Report

According to the country’s Ministry of Strategy and Finance, the cryptocurrency airdrop, which refers to a marketing stunt that involves sending coins or tokens to a wallet address, is now legally subject to gift tax in South Korea. According to local news reports, the Tax and Customs Office of the Ministry of Economy and Finance has stated that crypto issuers who distribute coins or tokens to merchants’ wallets for free will be subject to the nation’s gift tax under the existing Inheritance Tax and Gift Tax Act. will be subject to.

according to a yonhap news report (in Korean), even though South Korea has not yet imposed a capital gains tax on crypto trading, it currently imposes a gift tax on assets “gifted” between parties. However, it lacks detailed standards and monitoring systems on crypto “gifts”, including airdrops.

β€œIn case of gift of virtual property, the principle is certainly subject to taxation,” said a tax industry official. The Strategy and Finance Department notes, “Whether a specific virtual property transaction is subject to gift tax should be determined taking into account the status of the transaction, for example whether it is a consideration or real property and The profit has been transferred.”

The latest announcement follows the ministry’s decision earlier this month to levy a gift tax or inheritance tax for more than 15 years if a crypto user is illegally held with over KRW of coins worth 5 billion (approximately Rs XXX crore). More is gifted or inherited or tokens to another party. The government can currently impose a gift or inheritance tax for 15 years on a person who has given a “gift or inheritance” illegally or without notifying the government.

Last month, CoinDesk informed of Citing the need for more time for cryptocurrency exchanges and businesses to set up the tax system, the government pushed back the adoption of a capital gains tax from January 1, 2025 – from January 1, 2025. It is planning to levy 20 per cent capital gains tax on any annual gain of more than KRW 2.5 million (approximately Rs 1.5 lakh) earned from trading cryptocurrencies.


Affiliate links may be generated automatically – see our ethical statement for details.

LEAVE A REPLY

Please enter your comment!
Please enter your name here