This country might be the first to tax NFTs

Author: Nishu November 24, 2021

This Country Might Become First To Impose Tax on NFTs


Crypto taxation has become a key part of the discussion in the regulatory debate. On the one hand, some countries are imposing capital gain taxes based on existing rules while on the other, a few nations have framed new tax regulations on crypto transactions.

South Korea is one such nation currently leading the regulatory demography with its crypto taxation rules. It has imposed a 30% tax on crypto transactions which is set to come into effect from the next year. Now, the nation is on the verge of becoming the first country to impose taxation on non-fungible tokens (NFTs).

FSA Plan to Tax NFTs Under “Other Income”

As per a report published in Korea Herald, the South Korean financial regulator Financial Services Commission (FSC) has outlined plans to introduce a tax system for NFTs as well. Doh Kyu-sang, the Vice Chairman of FSC revealed that the regulatory body is planning to bring gains from NFTs sales under the current Act on the Specified Financial Transaction Information.

Under the Specified Financial Transaction Information rule, any gains made from the sale and purchase of virtual assets qualify as “other income” and are subject to taxation.

Owners of virtual assets, such as NFT artworks by a famous artist, are required by law to pay a 20% tax on any income that exceeds 2.5 million won ($2,102) from selling the assets.

Finance Ministry Doesn’t Agree With FSA

The Finance Ministry, however, disagrees with FSA’s evaluation of NFTs and believes it’s still controversial to categorise them as virtual assets. Finance Minister Hong Nam-ki had said, “(I think) NFTs do not belong to virtual assets yet.”

The difference in opinion on NFTs between the regulatory body and the finance ministry could create a lot of market confusion which is not good for the ecosystem.

South Korea has emerged as one of the most regulatory sound crypto ecosystems after its recent implementation of AML guidelines. The new regulations pushed out hundreds of unregistered mainly comprising of small and medium-sized crypto exchanges, as they failed to fulfil the criteria of registration.

24 November, 2021, 9:29 pm

News Cinema on twitter News Cinema on facebook

Wednesday, 24th November 2021

More Stories
Putting a quarter in a cup of frozen water during a storm like Hurricane Ian can protect your health
Allu Arjun Celebrates Wife Sneha Reddy’s Birthday at Golden Temple in Amritsar – Pics
Porsche Shares Jump in Blockbuster Market Debut
US Economy Weaker Than Thought in Year’s First Half, by One Measure
Coolio has to perform with production crew as his backing dancers
Vikram Vedha Directors Pushkar-Gayatri On Film Being A Copy Of Tamil Version: “It’s Completely Different”
German Inflation Soars to Double-Digits for First Time in Decades
Queen’s death certificate released: Records reveal she died from ‘old age’
EXCLUSIVE: Salman Khan Still Doesn’t Say ‘Yes’ To Atul Agnihotri’s Hindi Adaptation Of Korean Film!
James Webb captures a spectacular image of a sparkling galaxy
Homes for Sale in New York and Connecticut
Hospitals in Coastal Cities Risk Flooding Even in ‘Weak’ Hurricanes, Study Finds
McKinsey Is a Consulting Powerhouse. But Is It a Force for Good?
Homes for Sale in Brooklyn and Manhattan
Israeli chess commentator is sacked and accused of sexism
Julia Haart calls ex-Clinton lawyer Lanny Davis a ‘sleaze merchant’ in new defamation suit
Ernest Hemingway’s Florida mansion suffers wind damage from Hurricane Ian but cats fine
‘Mona Lisa and the Blood Moon’ Review: Escape From New Orleans
Durga Puja 2022: How to celebrate across India
Porsche Takes Off in Trading Debut
Sara Tendulkar cheers for dad Sachin during IND-L vs AUS-L semi-final clash, see pic
Hundreds of royal fans line up outside Windsor Castle to become the first to see the Queen’s tomb
Three Soyuz Crewmates Return to Earth, Finish Station Mission
T. rex skeleton goes up for auction in Asia and could fetch up to $25 MILLION
Finding a New Home, and New Hope, After Leaving Ukraine
‘InHospitable’ Review: Fight for Survival
Ian’s Next Stop: Georgia and South Carolina
‘What We Leave Behind’ Review: A Father’s Final Project
KAROL MARKOWICZ: The left and feminist harpies are NOT WRONG to hate Italy’s first female PM
Meet Snakey McCrocface! Seabeast with long neck and crocodile-like jaws swam oceans 70m years ago
You Can’t Skip This Ad
Ian Moves North
Hubble detects protective shield defending a pair of dwarf galaxies
Turkish singer Melek Moso cuts her hair in support of Iran’s protests over Mahza Amini’s death
Hurricane Ian updates LIVE: 2 million without electricity across Florida, flood warnings in place
Soyuz Crew Landing on Earth Soon Live on NASA TV
Monster Hurricane Ian devastates Florida leaving 2million without power, many trapped in homes
Navratri 2022: A Quick Garba Tutorial From Sonali Bendre
Maja Maa: Gajaraj Rao shares his experience of working on the film, calls it a ‘celebration of life’
Amazon launches its first Kindle e-reader to come with a stylus
BREAKING: Jasprit Bumrah ruled out of T20 World Cup 2022 due to stress fracture, says report
Inland areas are facing life-threatening flooding as Ian soaks Florida.