South Korea Considering 50% Tax On Airdrops

South Korea has been going back and forth on its crypto tax bill. Government officials declared their plans for a new tax reform and ultimately deferred the policy of crypto tax to 2025. The tax proposal has been met with controversy since its inception and has been delayed multiple times.

While originally scheduled to come into effect early 2022, petitions and even government support got the tax postponed for a year. It is now even further postponed until 2025. Lawmakers who opposed the bill called for clearer regulations first.  The country has been stepping up efforts to regulate cryptocurrencies even more in recent months following the Terra Luna crash and its ongoing aftermath. 

The proposed crypto tax includes a 20% tax on annual gains exceedings 2.5 million won (around $1,850 USD). South Korea also previously announced the taxing of inherited or gifted tokens under local inheritance tax laws.

A ministry of Economy and Finance official announced today that this includes crypto airdrops. The report stated that the tax will range from 10 to 15 percent on a case by case basis. 

The South Korean tax authority announced their plans to tax inherited or gifted cryptocurrencies. These assets will be evaluated by four service providers (Dunamu, Bithumb Korea, Korbit, and Coinone) to determine the average price of the crypto the month prior and subsequent months.