South Korea tax agency faces hurdles before January virtual asset tax rollout

  • South Korea’s National Tax Service discussed virtual asset tax guidance with its advisory panel.
  • The Aug. 24 meeting covered transfers, lending, staking, airdrops and hard forks.
  • South Korea initially targeted 2022 implementation before moving the rollout to January 2023.

South Korea’s National Tax Service (NTS) is struggling to finalize detailed guidance for a planned January implementation of virtual asset taxation. At its first advisory panel meeting on Aug. 24, the agency examined how transfers and lending should be defined and considered tax standards for staking, lending, airdrops and hard forks. Advisers said current law limits what can be addressed through an administrative notice, allowing calculation methods such as acquisition costs to be clarified but not permitting undefined transactions to be made taxable. The uncertainty could complicate reporting for investors and tax-withholding operations for exchanges. South Korea has worked on a virtual asset tax framework since 2020, initially targeting 2022 before pushing implementation to January 2023 amid industry opposition and legal complexities. Advisers indicated that legislative amendments may be needed to address some transactions fully.

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South Korea tax agency faces hurdles before January virtual asset tax rollout - CoinPost Terminal