South Korean financial regulator noted that not all non-fungible tokens will be classified as virtual assets and taxed
The Financial Services Commission of South Korea (FSC) will begin taxing transactions with non-fungible tokens (NFT) starting next year. This was stated by FSC Deputy Chairman Doh Kyu San, Forkast News reports. According to Kyu Sang, NFT tokens will be taxed in accordance with the existing taxation rules for virtual assets.
The FSC noted that not all NFT tokens will be classified as virtual assets and taxed. The regulator clarified that only NFTs issued in large circulation, as well as those intended for investment or payment, will be subject to tax.
From January 1, 2022, amendments to the tax legislation come into force in South Korea, which introduce a tax on transactions with cryptocurrencies. Residents of the country from next year will be obliged to pay a 20 percent tax on income from operations with digital assets in excess of 2.5 million Korean won ($ 2.1 thousand at the current exchange rate as of November 23).