South Korea Crypto Tax: Crucial NTS Ruling Impacts Global Virtual Asset Wages

Key Points

1. The NTS ruling mandates that virtual asset income, including crypto earned abroad, must be reported in comprehensive income tax returns under South Korea's tax laws.

2. The ruling applies to various forms of crypto income, such as salary payments, bonuses, and freelance payments, all taxable at their KRW value on the day of receipt.

3. Taxpayers must maintain detailed records of crypto transactions, including dates, types of cryptocurrency, and income sources, to ensure compliance.

4. The NTS's clarification reflects a broader global trend toward formalizing crypto taxation, aligning digital assets with traditional financial regulations.

5. Professional tax guidance is recommended due to the complexity of crypto tax laws, ensuring accurate reporting and minimizing errors.