South Korea Taxes Crypto Gifts and Krypton Inheritance

The South Korean tax authority has announced plans to start taxing cryptocurrency gifts and inheritance of cryptocurrencies. Taxes will need to be paid in fiat. Seoul also announced that it will strengthen its anti-manipulation measures in the cryptocurrency market.

According to KBS and Donga Ilbo, the National Tax Service (NTS), the country's main tax authority, announced that from January 2022, citizens will be required to pay tax on cryptocurrency that they either received as a gift or inherited from family members or acquaintances. The plan will come to fruition despite the fact that the National Assembly recently imposed a grace period on cryptocurrency trading profits, which means investors can trade tax-free until at least 2023.

NTS will add a new tool to its website. This widget will allow people to calculate how much tax they need to pay. The tool will use token price data provided by cryptocurrency exchanges Upbit, Bithumb, Korbit, and Coinone. The average price of tokens for two months will be used for the tax calculation.

Image: KBS