Being a South Korean You May Now Need to Declare Your Overseas Crypto Exchange Holdings
Hey folks.
Crypto holders in South Korea were warned to declare their overseas crypto exchange holdings - or face a potential "tax bombshell".
Tax Accountant, Dae Kyung issued these cautionary words at the Hana Bank Asset Management group's Asset Management Consulting Center.
Profits from cryptocurrency trading are tax-free in South Korea as long as the trading is conducted on local platforms.
That is scheduled to change in the upcoming year. A new rule will compel traders to pay tax on profits over a threshold of approximately $2,100 and to make capital gains declarations.
However, according to Kim, crypto assets held at platforms outside of the country are already considered "overseas assets".
Kim shared, that failure to declare these assets on Financial Year 2023-2024 tax declarations could be deemed a tax law violation. Declarations of "overseas financial account" must be done by the end of the month of June of this year, wrote the tax expert.
According to the act, “if the total balance of overseas financial institution accounts exceeds [$363,000],” South Korean citizens “must fulfill the obligation to report overseas financial accounts by June 30.”
As per the tax expert, tax bodies in South Korea were not equipped to locate overseas assets and they relied on declarations made voluntarily for their information, Kim shared.
Kim pointed out that since 2014, South Korean tax authorities have been sharing information with their colleagues in the United States and other OECD countries.
The tightening global regulation of cryptocurrency exchanges has expanded this to cryptocurrency wallets. The sharing of data between international exchanges is now compulsory in many areas.
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