South Korea’s Ministry of Strategy and Finance said that airdrops may be subject to gift tax.
Digital assets are spreading to many operating regions on a global scale and expanding their usage area. Digital assets, which find a place for themselves in real or digital environment, are now in our daily life, even in such a situation that they can even be considered as a gift officially. Airdrops, in which crypto companies provide special advances to their users, can be defined as a real gift.
South Korea May Subject AirDrops to Gift Tax
South Korean officials shared their views on the tax law of digital asset transactions. It was stated by the Ministry of Strategy and Finance that airdrops should be subject to gift tax.
The statement made by the authorized persons included the following:
“Airdrops sent in digital asset form are a gift taxable transaction. The free transfer of assets is a gift under the Inheritance and Gift Tax Act. In this case, gift tax will be charged from the third party to whom the virtual asset is transferred free of charge.
For example, if an investor receives a digital asset payment as an airdrop reward from an exchange, that investor may be subject to gift tax. This is because gift tax is levied comprehensively on all objects with economic value that can be converted into money, or on all legal and factual rights with economic benefits and property values.
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