South Korea will impose a 10-50% gift tax on cryptocurrency airdrops

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Last Updated on August 23, 2022 by Bitfinsider

Cryptocurrencies have been officially classified as virtual assets under South Korean law, despite the postponement of the crypto gains tax to 2025. In response to a tax inquiry about exchanges’ transfers of virtual asset airdrops, South Korea’s tax authority stated that any free virtual asset transfers in the form of airdrops, staking rewards, and hard-forked tokens would now be subject to a gift tax. According to Yonhap News, a gift tax will be levied on the third party to whom the virtual asset is transferred for free.

Although the tax on virtual asset gains has been delayed until 2025, free virtual asset transfers will be subject to a 10-50% tax under the Inheritance and Gift Tax Act, according to the tax authority. The Act requires recipients who receive a free “gift” to file a gift tax return within three months of receiving it. Because there are currently no regulations governing the virtual asset market, the ministry stated that actual taxation on such virtual asset transfers will be considered on a case-by-case basis.

The virtual asset gains tax has been delayed due to a lack of proper regulatory guidelines surrounding virtual assets. The virtual asset gains tax, which was supposed to be implemented in 2023, will now be implemented in 2025.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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