NFT Tax & ‘Practical Difficulties’ with Crypto Tax In Spotlight In S Korea

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South Korean MPs spoke out again about the need for taxing the non-fungible token ( NFT). While the government is winning on all sides against opposition from MPs to its controversial tax plan, challenges from MPs are making it difficult for the government to be best.

the Finance Minister and Deputy Prime minister

Reported that Hong Nam-ki, the Finance Minister and Deputy Prime minister of Hong Nam-ki said that the much-maligned 20% levy for crypto trading profits above the annuaal threshold USD 2,100 would be implemented in January next year. This was after being quizzed by the Planning and Finance Committee of the National Assembly.
Hong pointed out that Seoul was also considering taxing NFT sales.

On Friday, however, it was the turn for the committee. News1 reported. Yoo Kyung-jun, the opposition People’s Power MP, expressed “concern” about NFTs, stating that current rules did not make it clear whether NFTs should be included in cryptoasset tax calculations. This fact could “lead to tax evasion.”

Kim Dae-ji (head of the National Tax Service) was also called upon to answer questions by the MP members of the committee regarding crypto tax.

Kim was asked questions about the NTS’s handling of crypto-related problems. One MP offered the hypothetical example of a South Korean cryptotrader who bought cryptoassets valued at “around USD8,000” on an American exchange. The tokens were then moved to a domestic exchange where the price climbed to twice that amount within a year. Finally, the tokens were sold for fiat at three times their original value the next year.

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