South Korea's Ministry of Finance and Economy: Will impose taxes on virtual assets as originally planned starting January 1 next year

According to market news, Moon Kyung-ho, head of the Income Tax Division of the Ministry of Economy and Finance of South Korea, stated at an emergency meeting on the taxation of virtual assets that the government will proceed with the taxation of virtual assets as originally planned starting January 1 next year. This is the first time the Ministry of Economy and Finance has publicly expressed its stance on the issue of virtual asset taxation.

According to the current income tax law, income generated from the transfer or lending of virtual assets will be classified as other income, with a tax rate of 22% applicable to virtual asset income exceeding 2.5 million won (20% other income tax plus 2% local income tax). The tax targets approximately 13.26 million investors. Head Moon revealed that the National Tax Service is formulating relevant announcements and has had multiple discussions with the five major virtual asset operators, expecting to conduct legislative announcements soon.