From 2022, donated or inherited virtual assets will be assessed and taxed accordingly, South Korea’s national tax service said. Dunamu, Bithumb Korea, Korbit, and Coinone are the new Virtual Asset Service Providers (VASPs) tasked with valuing digital assets for these tax purposes.
Virtual asset service providers responsible for evaluating crypto giveaways
South Korea’s National Tax Service (NTS) recently announced that starting in 2022, inherited or donated digital assets will be taxed, according to a report. He added that these digital assets will be taxed at the average amount for each month before and after the inheritance start date or donation date.
In a report from KBS explaining the upcoming changes, the tax administration also revealed the Virtual Asset Service Providers (VASPs) responsible for valuing inherited or donated property. According to the report, these VASPs include Dunamu, Bithumb Korea, Korbit, and Coinone.
Obtaining the daily average price
Meanwhile, the NTS is cited in the report explaining how the valuation process for gifted or legacy virtual assets goes.
We expect to value virtual assets traded on other exchanges at a reasonably recognized value, such as the daily average price on the trading day announced by the trader or the market price announced at the close.
As for taxpayers calculating the average monthly price, the report says that a virtual asset average daily price survey service tool “will be provided to Hometax [NTS site] from March of next year.
What do you think of the Korean National Tax Service’s decision to tax legacy digital assets? Let us know what you think in the comments section below.
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