A South Korean tax authority notes, “In the case of a free gift of virtual assets, the principle is, of course, the subject of taxation.”
South Korea ramps up its crypto regulations as the Ministry of Strategy and Finance interprets the current tax laws to state that a gift tax will be imposed on crypto airdrops. Meanwhile, the Italian Revenue Agency explains that crypto traders are not required to fill the Rw form if transactions are made through an Italian platform.
The South Korean tax authorities claim that giveaways and free release of crypto tokens should be charged with a gift tax as the free transfer of tokens counts as a gift under the Inheritance and Gift Tax Act. Moreover, this gift tax will be levied on users who are on the receiving end of the free transfer.
Users entitled to pay the gift tax will have to file a gift tax return within three months of receiving the crypto airdrop, with the tax rate ranging between 10 to 50%.
The Ministry has partially agreed that whether an airdrop qualifies for taxation will be determined by the “transaction situation.”
On the other hand, the Italian Revenue Agency issued Notice 956-448/2022 to clarify the doubts regarding the filing of Rw framework declarations for income tax from cryptocurrency transactions. It was believed that the Rw form would cover all overseas investments; the Revenue Agency now claims that investments made using Italian platforms will be exempt from filing Rw declarations.
Despite these statements adding some semblance of clarity, details about Italy’s tax policies concerning crypto investments remain somewhat hazy due to a general lack of regulation in the crypto market.
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