News | South Korea to implement taxation on cryptocurrency profits in 2022, can NFTs be exempted?
According to the report by the Korea Times, South Korea's Finance Minister and Deputy Prime Minister Hong Nam-ki stated that South Korea is moving forward with a plan to tax profits from cryptocurrency trading starting in 2022. However, NFTs appear to be exempt from the crypto tax as South Korea does not categorize them as "virtual assets."
Table of Contents
According to the Korea Times, South Korea's Finance Minister and Deputy Prime Minister Hong Nam-ki stated that South Korea is moving forward with plans to impose taxes on cryptocurrency trading profits starting from 2022. However, NFTs seem to be exempt from cryptocurrency taxes as South Korea does not classify them as "virtual assets."
The ruling Democratic Party of Korea had previously proposed to delay the cryptocurrency tax policy to 2023 in September, but it was rejected. Therefore, South Korea's 20% tax on cryptocurrency profits will take effect in 2022.
The tax will be imposed on cryptocurrency profits exceeding 2.5 million Korean won (2,125 US dollars) within a year, with a 20% tax rate. Initially scheduled to take effect on October 1, it has been postponed due to the lack of tax infrastructure.
However, currently, the most popular NFTs seem to be exempt from cryptocurrency taxes as South Korea does not currently classify them as virtual assets.
This article is authorized to be reposted from Horizon News Network.