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    According to the financial rules of South Korea, NFTs are going to be taxable

    According to the financial rules of South Korea, NFTs are going to be taxable

     

    The lawmakers in South Korea have classified NFTs as virtual assets and therefore plan to impose a tax on these NFTs. On Tuesday, the South Korea Financial Services Commission or in short FSC has announced that nonfungible tokens or NFTs will be taxed from next year. As notified by Korea Herald, if an individual has virtual assets worth more than 2.5 million won, a total of 20 percent tax from the income derived from those assets will be imposed. 

     

    Furthermore, the vice-chairman of FSC, Doh Kyu-sang, specifically said that only some of the NFTs would be regarded as a virtual asset, and the rest would be disclosed in the category of other income. The tax authorities of Korea are in charge of deciding which NFT is taxable.

     

    Planned regulations and tax laws were in place and were to be effective from 1st January 2022, but due to some political reasons, the step has been pushed backwards. The Korean government has started to take measures and regulations in the crypto market to fight against money laundering and other corruption. 

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