South Korea pursues to tax NFTs

FSC’s vice chairman announced taxation for digital assets like NFTs while giving a speech at the national assembly. 

The tax rates include 20% for an amount above 2.5 million won & are scheduled to be implemented on Jan 1, 2022. 

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A further 20% tax on stock capital gains on amounts above 50 million won is scheduled to be implemented on Jan 1, 2023.

In the earlier days of the past month, the finance minister of South Korea, Hong Nam Ki & other senior officials of the FSC had views along the lines of NFTs not being a part of the digital assets and refused to tax the form of token, although he did recognize the need for discussions around taxation. 

A few weeks later, on the contrary, During a speech at the national assembly, the Financial Services Commission (FSC) vice-chairman, Doh Kyu-Sang, stated that NFTs will be monitored as digital assets and added that the ministry of Finance & Economy is currently Preparing to tax the token. 

South Korea’s tax law amendments demand that all income from digital assets above 2.5Million won can be taxed at 20%. Such an amendment means any person profiting more than 2.5 million won ( Approx 2,100$) needs to pay 20% of the excess amount. The amendments are set to be accounted for from Jan 1, 2022. 

The amendments have also been made where a 20% tax will be levied on stock capital gains on above 50 million won ( Approx 42,000$). Unlike the previous amendment, this one is scheduled to be implemented from Jan 1, 2023.

However, the FSC has recognized that not all NFTs are investment options & hence should be exempted from taxes. According to the FSC, only those NFTs categorized either as an investment vehicle or product and those that can be used as means of payment will be considered digital assets and be taxed accordingly. 

Consequently, both the parties, currently ruling the democratic party & the conservative people power side together backed a bill that vouches to push back the taxation on crypto gains by at least a year or two. Meanwhile, the finance committee reportedly has begun discussing various measures to ease the tax burdens on virtual assets. 

Other countries like the United Kingdom have also reportedly started drafting their Policies for digital assets, Including its taxation; meanwhile, the Russian president, Vladimir Putin, has stated that he doesn’t mind transactions regarding cryptocurrencies & has no plans of banning it. 

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Steve Anderrsonhttp://www.thecoinrepublic.com
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.

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