- The South Korean government will be imposing a gift tax on crypto airdrops with a tax rate of 10-50%.
- The Ministry of Strategy and Finance revealed that taxation would be considered on a case-by-case basis.
- As revealed, the transfer of assets via airdrops comes under the Inheritance and Gift Tax Act.
South Korea has recently made an announcement regarding the imposition of a gift tax on crypto airdrops, which will reportedly range from 10% to 50%. On August 22, the Ministry of Strategy and Finance revealed that the taxation would be considered on a case-by-case basis.
As revealed, the transfer of assets through airdrops falls under the Inheritance and Gift Tax Act. In addition, to this, the government official addressed the fact that the gift tax is going to be levied on the third party to whom the virtual asset is transferred free of cost, the receiver.
The statement released by the concerned department said:
Whether a specific virtual asset transaction is subject to gift tax or not is a matter to be determined in consideration of the transaction situation, such as whether it is a consideration or whether actual property and profits are transferred.
Well, it should be noted that South Korea is also expected to launch a capital gains tax on the crypto market in the year 2025. Amid this, the concerned officials are searching for other aspects of regulations involving exchanges.
In addition to this, it should be laid an emphasis on the fact that South Korea made headlines by taking numerous actions to put a halt to the illicit activities in the crypto market. Amid this crackdown, a total of 16 platforms associated with crypto are being suspended.
What’s more here, as a key takeaway, is the fact that the regulatory entities in the country are still continuing with their investigations of Terra. Their investigations have gone intense, and they are looking deeply into the crash of LUNA and UST.
Well, South Korea is not just the only country that has been investigating the case till now; there are other countries on the list too who are still finding dust associated with the case.