Tokens received by residents of South Korea as a result of hard forks and airdrops, as well as staking rewards will be included in the calculation of inheritance and gift tax. The Ministry of Strategy and Finance said this, according to local media.
The tax will be “charged on a third party that freely transfers a virtual asset.” The rate will be 10–50%. The law requires the recipient to file a tax return within three months of the transaction.
The ministry acknowledged that cryptocurrency transfers should be considered on a case-by-case basis, given the lack of regulatory clarity on this issue.
“Whether a particular transaction involving virtual assets is taxed depends on the specific circumstances. For example, whether it is a reward or whether actual property and profit are being transferred,” officials noted.
The clarification complements the July 2022 decision to postpone the effective date of the profits tax on digital asset transactions to January 1, 2025.
Authorities had initially planned to impose a 20% tax on Bitcoin traders’ income from January 1, 2022.
Despite public support for the government’s plans, in September 2021, lawmakers from the ruling “Democratic Toburo Party” spoke in favour of a one-year delay.
In October, similar proposals were put forward by representatives of the opposition party “People Power.”
The government fended off attempts by lawmakers to approve the postponement, but in late November the relevant National Assembly committee voted for a bipartisan amendment delaying the introduction of the taxation.
Back in May 2022, media reports indicated that the newly elected president Yoon Suk-yeol supported the delay.
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